U.S. to impose 104% tariff on Chinese imports

The United States will impose sweeping 104% tariffs on Chinese imports starting at 12:01 a.m. Wednesday, White House press secretary Karine Jean-Pierre confirmed Tuesday, a move expected to intensify a trade battle that has already unsettled financial markets and drawn sharp criticism from Beijing.

The announcement contributed to a drop in the S&P 500, which pared its intraday gains to just 1% as investors weighed the economic risks of escalating trade tensions.

The decision follows weeks of volatility in U.S.-China relations after former President Donald Trump threatened to impose an additional 50% duty on Chinese goods unless Beijing rolled back its 34% retaliatory tariffs. Those Chinese tariffs were enacted in response to earlier U.S. measures, including a 34% duty on a range of Chinese imports.

China has shown no signs of backing down.

"Trump’s threat was a typical move of unilateralism, protectionism and economic bullying," Chinese Embassy spokesperson Liu Pengyu said. "Pressuring or threatening China is not the right way to engage with us. China will firmly safeguard its legitimate rights and interests."

Amid the rising tensions, U.S. Treasury Secretary Scott Bessent met with Trump in Florida on Sunday in an effort to refocus messaging toward trade negotiations, according to a Politico report. The goal was to reassure markets that the tariff push is part of a broader strategy.

Trump said his administration would begin trade talks with Japan, a key U.S. ally in Asia, while officials noted that dozens of other countries have sought exemptions from tariffs set to take effect Wednesday. Vietnam and Indonesia have already offered to reduce tariffs on some U.S. imports.

Meanwhile, Chinese manufacturers — from tableware to flooring producers — are bracing for prolonged economic strain, with some warning of profit declines and exploring overseas expansion. Citigroup, citing rising external risks, lowered its 2025 GDP growth forecast for China to 4.2% from 4.7%.

According to Reuters, the European Commission is also considering retaliatory tariffs of 25% on U.S. goods, including soybeans, nuts and sausages, though products like bourbon whiskey were excluded from the draft list. European officials said they remain open to negotiations.

The latest U.S. tariffs mark a significant escalation in a trade conflict that has strained global markets and supply chains, with no immediate resolution in sight.