In a dramatic escalation of trade tensions, the United States has officially imposed a 104 percent tariff on Chinese imports, the White House confirmed late Monday. The move follows an ultimatum from President Donald Trump, who had given China a one-day deadline to withdraw its 34 percent reciprocal tariffs on US goods or face steep consequences.
Trump Enforces ‘Reciprocal Tariffs’ as Trade Showdown Intensifies
Speaking earlier this week, Trump declared that unless China reversed its retaliatory tariffs, the US would implement an additional 50 percent levy on top of the already-announced 34 percent duty—bringing the total effective tariff to 104 percent.
The White House has now confirmed to Fox Business that the 104 percent tariffs will be effective from April 9, escalating what is being dubbed as “Tariff War 2.0.”
China responded swiftly. Its Commerce Ministry announced a 34 percent retaliatory tariff, effective April 10, calling the U.S. decision an act of “tariff escalation and economic pressure.” Beijing also promised “necessary countermeasures to safeguard national interests.”
China Hits Back With Rare Earth Export Controls
In a parallel development, China’s Finance Ministry imposed export controls on critical rare-earth elements effective April 4, a move analysts say could have global supply chain implications. The restrictions include materials such as:
– Samarium
– Gadolinium
– Terbium
– Dysprosium
– Lutetium
– Scandium
– Yttrium
These rare earths are essential for advanced electronics, renewable energy technology, and defense applications.
Markets Plunge Across the Globe Amid Tariff Turmoil
The stock market has reacted sharply to the escalating trade dispute.
– The S&P 500 has plunged 20 percent from its February peak.
– The Dow Jones Industrial Average is down more than 17 percent.
– The Nasdaq officially entered bear market territory last week.
China’s Hang Seng Tech Index has also taken a massive hit, falling 27 percent in just one month. The yuan has weakened to its lowest level since January, while Chinese government bonds have experienced a major rally as investors seek safer assets.
India Also Targeted in Trump’s New Trade Policy
Adding to the global trade shake-up, President Trump on April 2 announced 26 percent tariffs on imports from India, branding them “reciprocal” tariffs. The move aligns with Trump’s broader strategy of realigning trade relationships to benefit American industry and reduce perceived imbalances.
