In a dramatic escalation of the ongoing trade war, the United States has raised US-China tariffs to an unprecedented 104% effective immediately. President Donald Trump approved the tariff hike after China failed to withdraw its retaliatory 34% tariffs on American goods within the 24-hour deadline issued by Washington.
From Warning to Action in Days
This move marks a sharp rise from previous tariff levels. Just weeks ago, the US was taxing Chinese imports at 10%. President Trump had already declared last week that the US would implement “reciprocal tariffs,” matching or exceeding the rates other countries impose on American goods. China’s existing tariff rate of 44% at that time prompted the US to respond with a matching increase, bringing the total to 54%.
However, after Beijing responded with a fresh 34% hike of its own, Trump immediately followed through on his threat of adding another 50%, pushing the total US tariff rate on Chinese goods to 104%. The new rate, the highest in modern US-China trade history, takes effect today.
National Emergency Cited
The White House cited a “national emergency” caused by persistent trade deficits and security concerns as justification for the action.
“China has taken advantage of the US for far too long,” Trump said earlier this week. “This ends now. We are reclaiming our economic sovereignty.”
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Trump Leaves Door Open for Talks
Despite the severe move, President Trump suggested there’s still room for negotiations. Posting on his social media platform Truth Social, he stated, “China also wants to make a deal, badly, but they don’t know how to get it started. We are waiting for their call.”
This statement indicates that the US administration remains open to talks—if China initiates them on Washington’s terms.
China Responds with Strong Rebuke
Earlier, Beijing had firmly rejected Trump’s ultimatum, calling the new tariffs an act of “blackmail.” China’s Ministry of Commerce issued a strongly worded statement saying, “The US threat to escalate tariffs against China is a mistake on top of a mistake. It exposes the US’s blackmailing nature.”
The ministry vowed to fight back if Washington continues with its pressure tactics. “If the US insists on having its way, China will fight to the end,” the statement warned.
Global Markets on Edge
This sudden escalation in tariffs has rattled financial markets worldwide. Investors fear the intensifying US-China trade tensions could further disrupt global supply chains, raise consumer prices, and destabilize economies already grappling with inflation and geopolitical instability.
As the world’s two largest economies square off, the international community is bracing for ripple effects across trade, industry, and diplomacy. The next move—whether toward further escalation or eventual talks—will shape the global economic landscape in the months ahead.
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