WASHINGTON, D.C. – US President Donald Trump has launched a new wave of tariffs that will severely impact trade relations with China, marking the escalation of a trade war between the world’s two largest economies.
Under the latest measures, imports from China will be hit with a staggering 104% tariff, the highest for any nation, as the US doubles down on its trade stance.
Trump’s decision comes after a series of retaliatory actions from both Washington and Beijing.
Initially, Trump announced a 34% tariff on Chinese imports in response to China’s own tariffs on US goods.
As tensions escalated, the President warned that the tariff could rise to 50%, and eventually to the now imposing 104% if China refused to relent.
Despite the sharp rate, Trump defended the move, suggesting that China was eager to reach a deal but was unsure of how to proceed.
“They want to make a deal, but they just don’t know how to get started because they’re proud people,” he said.
His remarks were made in a speech at a Republican Party dinner, where he acknowledged the economic fallout but insisted the tariffs were yielding positive results, with “money pouring in.”
China, however, has shown no signs of backing down. The country’s government expressed defiance, accusing the US of engaging in “bullying practices” and warning of firm countermeasures if the trade war continued.
In a statement, Chinese Foreign Ministry spokesperson Lin Jian said, “The US continues to impose tariffs on China in an abusive manner and persists in applying maximum pressure.”
He added that the US must show “an attitude of equality, mutual respect, and reciprocity” to resolve the dispute.
The escalating trade war has caused significant market turmoil globally, with trillions of dollars wiped off market values following the announcement of new tariffs.
On Wednesday, European and Asian stock markets suffered further losses, as the fallout from the tariffs continued.
The UK’s FTSE 100 fell by 2.5%, and Japan’s Nikkei 225 index dropped by 4.3%.
Meanwhile, Trump remains optimistic about the outcomes of his tariffs, saying that more than 70 countries have reached out to negotiate since the new trade barriers were announced.
He suggested that many countries affected by the tariffs are “dying to make a deal,” adding that delegations from Japan and South Korea are already on their way to Washington for talks.
The European Union, also impacted by a 20% tariff, has expressed its readiness to engage in negotiations, offering to reduce tariffs on industrial goods to zero.
However, Trump criticized the EU’s offer as insufficient, demanding more significant reductions. Other countries on Trump’s “worst offenders” list include Vietnam (46%), India (26%), and Cambodia (49%).
In the US, the tariff debate has stirred internal conflict, including a public spat between Elon Musk and Trump’s trade adviser, Peter Navarro.
Musk, the CEO of Tesla, publicly ridiculed Navarro, calling him “dumber than a sack of bricks,” illustrating the divisions within the White House over the effectiveness of the trade strategy.
The future of these tariffs remains uncertain, as negotiations continue to unfold.
While Trump insists his approach will be “legendary,” the escalating trade war threatens to disrupt not only global markets but also international diplomatic relations.
