- A 104% total tariff on Chinese goods is now active, combining a 50% hike and 34% reciprocal duties.
- The U.S. has also imposed new tariffs on 185 other trading partners, including the EU, Canada, and Japan.
- Markets are reeling, with major indexes ending sharply lower Tuesday.
- China has vowed to “fight to the end,” escalating fears of a prolonged trade war.
Washington D.C., April 9, 2025 — The Trump administration officially triggered its steepest trade crackdown yet, enacting a 104% tariff on Chinese goods and broadening new duties to cover exports from nearly 185 nations as of 12:01 a.m. ET Wednesday.
This move marks a critical escalation in what many are calling Trade War 2.0, a reprise of the 2018-2019 battle but with significantly higher stakes and wider global impact.
“It was a mistake for China to retaliate,” said White House Press Secretary Karoline Leavitt, referring to Beijing’s initial countermeasures earlier this week. “We will not back down from protecting American industries.”
The 104% tariff includes a 50% new import duty layered on top of 34% in so-called ‘reciprocal tariffs’, aimed at mirroring what the U.S. describes as decades of unfair trade practices by China.
Global Fallout Begins
Already reeling markets tumbled again on Tuesday after the announcement, erasing early gains sparked by Treasury Secretary Scott Bessent’s push for dialogue. Any hopes of a temporary détente were crushed as President Trump declared that the U.S. “will get fair deals or nothing at all.”
“China and others are willing to talk,” Trump said at the White House. “But we’re not going to be walked on anymore.”
Other Major Tariff Hits:
- The EU faces a 20% tariff, impacting 70% of its exports to the U.S.
- Canada has responded with tariffs on U.S. vehicle imports
- Japan and South Korea are reportedly entering early negotiations
Wider Trade Offensive
In addition to the China-focused move, a 10% blanket tariff on all U.S. imports—announced on April 2—also goes live today. These tariffs affect everyday items from electronics and appliances to food and clothing, with economists warning of rising prices for American consumers.
“Companies are already raising prices or reworking supply chains,” said Bloomberg’s global trade analyst Meena Gupta. “This is going to affect not just Wall Street, but Main Street.”
China’s Response: Fight Mode
Beijing’s foreign ministry issued a defiant statement Tuesday night, promising to “fight to the end,” echoing its hawkish tone from earlier in the week. Details of new retaliatory tariffs from China are expected to be released within hours, though initial reports suggest the focus will be on U.S. agriculture, energy, and automotive sectors.
Next Steps
While talks are reportedly underway between U.S. officials and some allies like Japan and South Korea, it’s unclear whether these discussions will prevent further escalation. The White House maintains that these tariffs are designed to “rebalance global trade.”
Market Watch – April 9, 2025 (Pre-market sentiment):
- Dow Futures: -1.3%
- S&P 500 Futures: -1.5%
- Nasdaq Futures: -2.1%
- 10-Year Treasury Yield: 4.29% (+4 bps overnight)
📌 Read more:
- What Trump’s Tariffs Mean for the Economy and Your Wallet
- Tariff Timeline: How We Got Here
- How Businesses Are Coping With the 10% Blanket Tariff
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