Trade War Heats Up: US Announces 104% Tariffs on Chinese Goods

In a major escalation of trade tensions, the United States on Tuesday imposed 104 percent tariffs on imports from China, a significant step beyond the initially announced 34 percent increase. The hike, part of a broader reciprocal tariff strategy, reflects Washington’s response to Beijing’s refusal to withdraw its countermeasures against American goods.

Initially, the US had planned a 34 percent tariff hike as part of former President Donald Trump’s reciprocal tariffs package, aimed at countering unfair trade practices and protecting American industries. However, the situation worsened after China reiterated its plan to impose 34 percent retaliatory tariffs on US exports. In response, the US administration added another 50 percent in duties, bringing the total tariff increase to 84 percent. Combined with previous duties, the effective tariff rate on certain Chinese imports now stands at a staggering 104 percent.

White House Press Secretary Karoline Leavitt defended the move, saying the United States would no longer tolerate what she described as “decades of unfair trade practices that harm American workers.” Leavitt said, “Countries like China, who have chosen to retaliate and double down on their mistreatment of American workers, are making a mistake.”

The new tariffs, which came into effect today, are expected to impact a wide range of Chinese goods, including steel, aluminum, electronics, and consumer products. Analysts suggest that American businesses and consumers may also feel the pinch due to rising input and retail prices.

China reacted strongly to the development. In a statement issued earlier today, the Chinese Ministry of Commerce condemned the additional 50 percent tariff as “a mistake upon a mistake,” and signaled an escalated retaliatory response targeting key US exports such as agricultural products, aircraft parts, and high-end technologies.

The tit-for-tat trade measures have sparked concern among global investors and economists, who fear a repeat of the 2018–2019 US-China trade war, which disrupted global supply chains and contributed to market volatility.

As tensions rise, diplomatic channels remain strained. No new trade talks have been announced, and both sides appear to be hardening their stance. Observers say the fallout could extend beyond economics, impacting geopolitical relations, regional alliances, and global market sentiment.