United States to Impose 104% Tariffs on China Starting Midnight Wednesday
Wall Street Reacts to New Tariff Announcement as Tensions Escalate Between Washington and Beijing
In a significant escalation of trade tensions, the United States has announced that it will impose a 104% tariff on Chinese goods starting at midnight on Wednesday.
The announcement was confirmed by White House Press Secretary Karoline Leavitt after two days of heightened geopolitical tensions between Washington and Beijing.
This development marks a substantial increase in tariffs, as the new rate is the highest in the world, on par with the sum of a previously announced 50% tariff and an additional 34% revealed during the recent 'Liberation Day.' The decision has immediate implications for markets, with a prior rally in major U.S. indices swiftly reversed.
The S&P 500, which had opened 3.5% higher, found itself in negative territory, closing down 2.6% on Tuesday, while the NASDAQ also closed with a decline of 2.6%.
The announcement follows a tumultuous week for investors.
On Monday, President Trump criticized China in a post on social media, declaring that if China did not roll back its recently announced 34% tariff, additional tariffs would prevail starting April 9. This escalation follows a broader downturn, with global stock markets, including those in Europe and Asia, collectively losing nearly $10 trillion in market value.
Trump remarked that China was eager to reach a trade agreement but indicated uncertainty on how to proceed, emphasizing that the U.S. administration is awaiting contact from Chinese officials.
This situation arises amid ongoing concerns in Beijing, where officials have sought to bolster the national economy through fiscal stimuli and other measures in response to the trade conflict.
The White House's latest statement comes just hours before reciprocal tariffs affecting all trading partners are set to take effect at midnight Washington time.
In response to the new tariffs, China's Ministry of Commerce accused the U.S. of 'coercive tactics' and pledged to 'fight to the end' against what it terms an unwarranted escalation of trade disputes.
In Asian markets, the Hang Seng Index in Hong Kong experienced the most substantial decline globally, plummeting 13% on Monday, while the Chinese yuan faced severe depreciation amidst the ongoing tensions.
The announcement was confirmed by White House Press Secretary Karoline Leavitt after two days of heightened geopolitical tensions between Washington and Beijing.
This development marks a substantial increase in tariffs, as the new rate is the highest in the world, on par with the sum of a previously announced 50% tariff and an additional 34% revealed during the recent 'Liberation Day.' The decision has immediate implications for markets, with a prior rally in major U.S. indices swiftly reversed.
The S&P 500, which had opened 3.5% higher, found itself in negative territory, closing down 2.6% on Tuesday, while the NASDAQ also closed with a decline of 2.6%.
The announcement follows a tumultuous week for investors.
On Monday, President Trump criticized China in a post on social media, declaring that if China did not roll back its recently announced 34% tariff, additional tariffs would prevail starting April 9. This escalation follows a broader downturn, with global stock markets, including those in Europe and Asia, collectively losing nearly $10 trillion in market value.
Trump remarked that China was eager to reach a trade agreement but indicated uncertainty on how to proceed, emphasizing that the U.S. administration is awaiting contact from Chinese officials.
This situation arises amid ongoing concerns in Beijing, where officials have sought to bolster the national economy through fiscal stimuli and other measures in response to the trade conflict.
The White House's latest statement comes just hours before reciprocal tariffs affecting all trading partners are set to take effect at midnight Washington time.
In response to the new tariffs, China's Ministry of Commerce accused the U.S. of 'coercive tactics' and pledged to 'fight to the end' against what it terms an unwarranted escalation of trade disputes.
In Asian markets, the Hang Seng Index in Hong Kong experienced the most substantial decline globally, plummeting 13% on Monday, while the Chinese yuan faced severe depreciation amidst the ongoing tensions.
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