The United States announces a sweeping 104% tariff on all Chinese imports, escalating tensions between the world’s two largest economies after China fails to meet President Donald Trump’s ultimatum to remove retaliatory tariffs on U.S. goods. The new tariff takes effect at 12:01 a.m. Eastern Time on April 9, 2025, and marks one of the most aggressive trade policy moves in modern American history.
White House Press Secretary Karoline Leavitt confirms the decision, stating that China missed the deadline and that the administration is moving forward with the tariff as promised. Leavitt warns that Beijing is “making a mistake” and praises Trump’s unwavering resolve, saying the president has “a spine of steel that will not break.”
The decision stems from a series of tariff exchanges that began earlier this month. Trump imposed a 34% tariff on Chinese imports as part of his new “Liberation Day” trade policy aimed at countering what he calls decades of economic manipulation and unfair trade practices. In retaliation, China levied its own 34% tariff on U.S. goods. Trump responded by threatening an additional 50% if China did not back down by April 8—bringing the total to 104% with today’s enforcement.
China’s government strongly criticizes the U.S. action, calling it economic blackmail. The Ministry of Commerce vows to “fight to the end,” signaling that more countermeasures could be on the way. Chinese state media portray the tariffs as an attack on global trade norms, warning of disruptions that could reverberate throughout international markets.
Investors react swiftly. The Dow Jones Industrial Average sees wild swings throughout the trading day, at one point surging more than 1,300 points before reversing course into negative territory. Analysts attribute the volatility to uncertainty over the long-term effects of a full-blown trade war and concerns about inflation and consumer pricing.
Economic experts warn that the dramatic tariff increase could significantly disrupt global supply chains, raise costs for American businesses and consumers, and push the world economy closer to recession. Sectors including technology, automotive, and retail are expected to be hit hardest as companies scramble to reassess sourcing and production strategies.
Despite growing fears among economists and business leaders, the Trump administration remains defiant. Officials argue that the tariffs are necessary to pressure China into making structural trade reforms, reducing reliance on subsidies, and eliminating forced technology transfers.
As the 104% tariff takes effect, the future of U.S.-China relations hangs in the balance. The international community watches closely to see whether the two powers will return to the negotiating table—or continue escalating their economic standoff.
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