The White House announced Tuesday that President Donald Trump will impose a staggering 104% tariff on all Chinese imports starting Wednesday, dramatically escalating existing trade tensions.
This new tariff includes a previously planned 34% increase, plus an additional 70% in response to China’s retaliatory measures. China had pledged 34% retaliatory tariffs on US goods by noon Tuesday, triggering Trump’s increased response.
Earlier Tuesday, China’s Commerce Ministry expressed strong opposition to the additional 70% tariffs, calling them “a mistake upon a mistake” and vowing to escalate retaliation against US exports.
Leavitt told reporters, “Countries like China, who have chosen to retaliate and try to double down on their mistreatment of American workers, are making a mistake. President Trump has a spine of steel, and he will not break.” She declined to specify conditions for lowering the tariffs.
Trump initially imposed a 10% tariff on all Chinese goods in February, citing China’s alleged role in illegal immigration and fentanyl trafficking. That rate doubled last month. China was the US’s second-largest import source last year, with $439 billion in goods, while the US exported $144 billion to China. These mutual tariffs threaten domestic industries and potential job losses.
Before Trump’s second term, the US charged an average 19.3% tariff on Chinese goods, according to the Peterson Institute for International Economics. The Biden administration maintained most of these tariffs, adding some, bringing the average to 20.8%. The new 104% tariff will raise the total average to nearly 125%.
Previous tariff rounds prompted some US businesses to shift manufacturing to countries like Mexico and Vietnam, although China remains a key source for many goods.
