The White House said Tuesday that President Donald Trump’s tariffs on imports from China might rise overnight to 104%. Beijing refuses to withdraw its retaliatory tariffs on U.S. exports.
“It was a mistake for China to retaliate. When America is punched, (the president) punches back harder,” White House press secretary Karoline Leavitt said. “That’s why there will be 104% tariffs going into effect on China tonight at midnight,” she said during a presser.
Chinese goods were already set to be slapped with 54% tariffs. The figure combined a 20% previously imposed tariff and a 34% additional tariff on Chinese goods. This is in retaliation for the U.S.’s large trade deficit with China.
“Right now, we’ve received the instruction to prioritize our allies and our trading partners like Japan and Korea and others,” White House economic adviser Kevin Hassett said on Fox News.
China is bracing for a war of attrition. Manufacturers are warning about profits and scrambling to plan new overseas plants. Citing rising external risks, Citi cut its 2025 China GDP growth forecast to 4.2% from 4.7%.
Stock futures are going down.
Xi Jinping will “fight to the end.”
Yesterday, #China‘s stock market fell 10% after Trump threatened an additional 50% tariffs. #XiJinping decided to “fight to the end.” The White House announced that 104% tariffs on China took effect at noon. The Dow up 3%+, the S&P up 3.2%, & the Nasdaq up 3.6%. Who is winning? pic.twitter.com/qnCRQ1aYA0
— Solomon Yue (@SolomonYue) April 8, 2025
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