WASHINGTON D.C, USA — In a significant escalation of his trade war, President Donald Trump‘s administration announced on Tuesday, April 8, 2025, that it would begin imposing tariffs of up to 104% on Chinese imports, effective just after midnight.
The move is part of Trump’s broader tariff plan, which aims to protect U.S. industries by raising duties on a wide range of foreign products.
Despite hopes in global markets that the U.S. might soften its stance, the White House confirmed that country-specific tariffs would go ahead as planned, including sharp duties on China in response to its retaliatory tariffs.
The 104% tariffs on Chinese goods will take effect at 12:01 a.m. Eastern Time, and are part of a series of tariffs targeting China, which has vowed to retaliate in kind.
The announcement came amidst a broader sell-off in U.S. stocks, with the S&P 500 index closing below 5,000 for the first time in nearly a year.
This marked the fourth consecutive day of losses since Trump’s tariff plan was revealed.
The S&P 500, down 18.9% from its February peak, is now hovering near bear market territory, defined by a 20% decline.
As a result, U.S. companies have suffered steep losses, shedding $5.8 trillion in market value.
The economic repercussions have been swift, with analysts forecasting potential long-term impacts on global markets, particularly as the tariffs affect various industries and product sectors.
Trump, however, remains resolute in his approach, framing the tariffs as a necessary response to decades of what he describes as unfair trade practices.
“These are tailored, highly tailored deals,” Trump said at a White House event, referring to negotiations with other trading partners.
“We’ve had talks with many, many countries, over 70, they all want to come in. Our problem is, can’t see that many that fast.”
The administration has announced upcoming talks with South Korea and Japan, two of the U.S.’s most significant allies and trading partners, as well as a visit from Italian Prime Minister Giorgia Meloni next week.
Trump has made it clear that he is pursuing country-specific deals that take into account not only trade but also foreign and military aid considerations.
“We’ve received the instruction to prioritise our allies and our trading partners like Japan and Korea,” White House economic adviser Kevin Hassett said, noting that the administration’s strategy is not just about tariffs but about seeking more tailored agreements.
At the same time, tensions with China are escalating.
The Trump administration’s decision to ratchet up tariffs to 104% on Chinese imports follows Beijing’s retaliatory measures and growing fears of a prolonged trade war.
China’s response has been to target U.S. goods, including agricultural products and key technological components.
Although Trump remains adamant about the effectiveness of his tariffs, some sectors in the U.S. are already feeling the pinch.
Retailers, particularly in the clothing and footwear industries, have warned of price hikes.
For instance, running shoes manufactured in Vietnam, which will soon face a 46% tariff, could see their prices rise from $155 to $220, according to industry estimates.
Consumers are also bracing for higher prices.
A Reuters/Ipsos poll found that three out of four Americans expect costs to rise as a result of the tariffs.
Shoppers have started to stock up on goods in anticipation of price increases.
“I’m buying double of whatever — beans, canned goods, flour, you name it,” said Thomas Jennings, a shopper in New Jersey.
As the trade dispute continues, the market slide has raised concerns about the potential for a global recession, with some business leaders, including those close to Trump, urging the president to reconsider his strategy.
However, the administration shows no signs of backing down.
With global oil prices stabilising after falling to four-year lows, the economic outlook remains uncertain as markets and manufacturers alike attempt to navigate the volatile terrain created by Trump’s trade policies.
