President Donald Trump’s aggressive tariff policies took effect on Wednesday, with a staggering 104 percent tariff imposed on Chinese goods. This move has further escalated the trade war between the U.S. and China, with Beijing vowing to take “forceful” measures in retaliation.
Following a weekend implementation of 10 percent tariffs on imports from various countries, rates on goods from the European Union and Japan increased as of 12:01 a.m. on Wednesday. However, China has been hit hardest by the new tariffs, with the cumulative tariff increase on Chinese products under Trump’s second term now reaching 104 percent.
In response, China promised countermeasures, with the commerce ministry saying it had “abundant means” to continue the fight. A government white paper emphasized the potential for resolving tensions through “equal-footed dialogue and mutually beneficial cooperation.”
Trump, meanwhile, expressed confidence that the U.S. could strike “tailored deals” with trading partners, highlighting discussions with countries like Japan, South Korea, Argentina, Vietnam, and Israel. Trump claimed countries were eager to negotiate, citing “countries calling us up kissing my ass.”
Despite this, China showed no signs of backing down, reaffirming its commitment to defending its interests and preparing retaliatory tariffs of 34 percent on U.S. goods.
The escalating trade tensions have raised concerns both in the U.S. and China. In Beijing, citizens like lawyer Yu Yan urged for dialogue, fearing the impacts of further escalation. In the U.S., consumers expressed anxiety over the rising prices, with some indicating they might need to reduce spending if costs continue to climb.
While Trump maintains that the tariffs will help revitalize America’s manufacturing base, many economists warn of higher inflation and uncertainty in the market. Trump also indicated plans for a new major tariff on pharmaceuticals.