US slaps 104% tariff on China after Beijing misses Trump's deadline

This comes after China did not meet the deadline set by President Donald Trump to lift its retaliatory tariffs on American goods

A White House official has confirmed that the US will enforce a 104 per cent tariff on China beginning at 12:01 am ET (0401 GMT) on Wednesday (April 8), according to a report by Reuters. 

This marks a major escalation in the ongoing trade tensions between the US and China, as the Trump administration aims to address what it perceives as unfair trade practices. In recent weeks, Trump has repeatedly accused foreign nations of imposing harsh duties on American products and “plundering” the US economy.

 

On Monday, the President warned that even higher tariffs could follow if China does not withdraw its newly introduced 34 per cent counter-tariffs. 

 

Criticising Beijing for ignoring previous warnings, Trump vowed to respond to any further measures with “immediate and significantly increased” tariffs. He also announced the suspension of all trade negotiations with China, saying the US would instead prioritise deals with other nations.

 

The White House confirmed to AFP that this latest round of tariff increases will be added to an earlier 34 per cent rate due to come into effect on Wednesday, bringing the total increase in duties on Chinese imports to 104 per cent for the year. To recall, Donald Trump also announced 26 per cent tariffs on imports from India on April 2 as part of a broader trade policy shift. 

China's response to Trump's tariff threat

Earlier, China described Trump's tariff threat as "blackmail" and pledged to "fight to the end".  "The US threat to escalate tariffs against China is a mistake on top of a mistake, which once again exposes the US's blackmailing nature," China's commerce ministry said in a statement. 

Tariff war: Impact on global markets

As a consequence of the ongoing trade war, the S&P 500 has dropped by 20 per cent from its February peak. The Dow Jones Industrial Average is down more than 17 per cent from its highest level. The Nasdaq entered bear market territory the previous week.

 

Meanwhile, in China, the Hang Seng Tech Index has declined by 27 per cent in one month. The yuan has fallen to its lowest level since January. Chinese government bonds have seen a sharp rally.