US Imposes 104% Tariff on Chinese Imports, Markets Rattle as Beijing Vows Countermoves
The United States has formally imposed a sweeping 104 per cent tariff on Chinese imports, triggering a fresh wave of trade tensions between the two economic superpowers. The new tariffs, confirmed by the White House, came into effect on Tuesday, April 9.
The multi-phase hike includes a 20 per cent tariff introduced in March, followed by an additional 34 per cent last week and a final 50 per cent slab now added. This unprecedented escalation follows through on former President Donald Trump’s warning to Beijing to withdraw its 34 per cent retaliatory tariffs on American goods.
White House Press Secretary Karoline Leavitt confirmed the move on Tuesday, stating, “He [Trump] is putting the world on notice and is putting the American people first.” She added that there would be “no extension or delay” in the implementation of the tariffs.
A US official told Bloomberg that the administration is proceeding “full steam ahead” with its hardline trade stance, including plans to impose a 20 per cent tariff on the European Union under what it calls the “reciprocal tariff doctrine”.
Reacting sharply, Chinese Premier Li Qiang criticised Washington’s trade measures during a call with European Commission President Ursula Von der Leyen, branding them “unilateral, protectionist, and coercive”.
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“Protectionism leads nowhere — openness and cooperation are the right path for all,” Li said.
Li also assured that China has “ample policy tools” to offset external shocks and expressed confidence in maintaining long-term economic stability. According to an official Chinese readout, the country’s 2025 economic roadmap already accounts for such global disruptions.
In direct response to the initial 34 per cent US tariff, Beijing had earlier imposed a reciprocal 34 per cent duty on American imports, effective April 10. The Chinese Commerce Ministry condemned the US actions and pledged “firm countermeasures” to safeguard national interests.
China’s Finance Ministry has also introduced fresh export controls on key rare-earth elements — including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium — effective from April 4. These elements are critical for high-tech industries, including electronics and defense manufacturing.
Global markets responded swiftly to the developments. On Wall Street, the S&P 500 has fallen 20 per cent from its February peak, while the Dow Jones Industrial Average is down over 17 per cent. The tech-heavy Nasdaq entered bear market territory last week.
In Asia, China’s Hang Seng Tech Index plummeted 27 per cent in a single month, and the Chinese yuan slipped to its lowest level since January. However, Chinese government bonds saw gains as anxious investors sought safer assets.
Adding to the growing list of tariff targets, Trump also announced a 26 per cent duty on Indian imports earlier this month, again citing the principle of “reciprocity”.
