President Donald Trump is set to impose a surprising 104% tariff on all Chinese imports on Wednesday (9), announced White House Press Secretary Karoline Leavitt on Tuesday (8).
The China was already prepared to see tariffs increase by 34% on Wednesday as part of Trump’s “reciprocal” tariff package. But the president added another 50% after Beijing did not back down on its promise to impose retaliatory tariffs of 34% on U.S. products by noon on Tuesday (8), adding another 84% in tariffs.
The Chinese Ministry of Commerce stated that it “strongly opposes” the additional 50% tariffs on Chinese imports, calling them “one mistake after another.” The ministry promised to increase its retaliation against U.S. exports.
U.S. stocks, which surged on Tuesday morning, began to fall again.
“Countries like China, which chose to retaliate and try to double down on their mistreatment of American workers, are making a mistake,” Leavitt told reporters. “President Trump has a backbone of steel, and he will not break.”
“The Chinese want to make a deal, they just don’t know how,” she added, but refused to share what terms Trump would consider to reduce tariffs on China.
Trump initially imposed a 10% tariff on all Chinese products in February, with no exceptions, linking it to the country’s alleged role in aiding illegal immigration and bringing fentanyl to the U.S. Last month, he doubled those rates.
China was the second-largest source of U.S. imports last year, sending a total of $439 billion in goods to the U.S., while the U.S. exported $144 billion in goods to China. The mutual tariffs threaten to harm industries in both countries and are poised to result in layoffs.
When Trump’s first term ended, the U.S. was charging an average tariff of 19.3% on Chinese products, according to an analysis by the Peterson Institute for International Economics. The Biden administration has kept most of Trump’s tariffs in place while adding others, raising the average rate to 20.8%.
But it is possible that on Wednesday (8), the total average tariff on Chinese exports to the U.S. could rise to nearly 125%.
This includes, among other products, toys, communication equipment such as smartphones, computers, and a wide range of other consumer electronics. All of these goods are likely to cost U.S. consumers substantially more very soon.
Source: CNN