The US President Donald Trump has escalated the trade war with China by imposing a massive 104 per cent tariff on Chinese imports, a move that marks one of the most aggressive trade measures in recent US history. The announcement came after Beijing refused to reverse a retaliatory 34 per cent tariff it had imposed on American goods.
The White House confirmed the new tariff late on Wednesday, calling it a response to what Trump described as years of economic exploitation by China. The decision came just hours after Trump gave Beijing a 24-hour ultimatum to roll back its tariffs.
Until recently, Chinese goods were taxed at 10 per cent. But tensions between the two economic giants have soared in recent weeks, prompting Trump to unveil a “reciprocal tariff” strategy. Under this policy, the US aims to impose tariffs proportionate to those it faces. For China, this meant an initial additional 34 per cent hike, pushing the total US tariff on Chinese products to 44 per cent.
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Citing national security concerns and trade imbalances, the US further imposed a baseline 10 per cent tariff on all imports, raising China’s tariff exposure to 54 per cent. The latest 50 per cent hike pushes that figure beyond 100 per cent, sparking concerns of a deepening global economic rift.
In response, China accused the US of blackmail and vowed to retaliate. Its commerce ministry condemned the new tariffs, warning that Beijing “will fight to the end” if Washington continues down this path.
Despite the harsh tone, Trump signalled a willingness to negotiate. In a post on his social media platform Truth Social, he claimed that China was eager to reach a deal but “didn’t know how to start.” He added that the US was “waiting for their call.”
The ongoing standoff has rattled global markets, with analysts warning of serious consequences for international trade. The situation now leaves the world’s two largest economies locked in a high-stakes confrontation, with no clear resolution in sight.
As both sides dig in, the international community remains watchful, fearing a repeat of the economic turbulence triggered by the pandemic just a few years ago.
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