Donald Trump has announced a significant increase in tariffs on Chinese imports, with a staggering 104% levy set to take effect at 5 AM UK time. This move marks a major escalation in the ongoing trade tensions between the United States and China, the two largest economies in the world.
At a recent press briefing, White House press secretary Karoline Leavitt stated that Trump believes China is eager to negotiate a deal with the U.S. However, she emphasized that it was a mistake for China to retaliate against previous tariffs. "When America is punched, he punches back harder," she said, highlighting the aggressive stance the administration is taking.
The tariffs come after Trump previously announced tariffs of 34% on specific goods from China. In response to China’s retaliatory measures, he decided to impose an additional 50% levy, bringing the total to 104%. This decision has sparked fears of further economic instability, as China’s commerce ministry vowed to "fight to the end" against what they termed "economic bullying" from the U.S.
Alongside the Chinese tariffs, around 60 countries labeled as "worst offenders" will also see new tariffs implemented. The European Union will face a 20% tariff, while Vietnam and Cambodia will see rates of 46% and 49%, respectively. Notably, the UK is not included in this list and has instead implemented a baseline 10% tariff on imported goods.
Since the announcement of these tariffs last week, global stock markets have reacted negatively, with significant declines across major U.S. indexes. The S&P 500, for instance, has lost approximately $5.8 trillion in market value over just four days, marking one of the worst downturns since the index’s inception.
In a related development, Trump signed four executive orders aimed at boosting the coal industry in the U.S. These orders are intended to keep certain coal plants operational and roll back regulations established during the Obama administration.
As the situation unfolds, the impact of these tariffs on both the U.S. and global economies remains to be seen. The administration’s aggressive trade policies are likely to continue shaping international relations and economic landscapes in the coming months.