Trump imposed 104% tariff on China, trade war started, risk in the market increased
#News Bureau April 9,2025
The US on Tuesday imposed a massive 104 per cent tariff on Chinese imports, further escalating the ongoing trade tension with China. The tariff has come into effect from Tuesday, April 9. The move is a result of President Donald Trump’s threat to Beijing to withdraw its 34 per cent retaliatory tariff imposed on American goods by Monday. Since China did not take any action by this deadline, the US implemented this aggressive trade policy. This move can have a profound impact on global trade and supply chains. A White House official called this move “the most aggressive trade move taken by the USA in recent years”. The tariff is a combination of existing duties and new duties imposed under Section 301 of the Trade Act. Trump on Sunday released a scathing statement on his social media platform Truth Social, in which he said, “If China does not withdraw its retaliatory tariffs of 34 percent, which are in addition to their long-term trade abuses already in place, the United States will impose an additional tariff of 50 percent on China starting April 9.” Along with this, he announced the cancellation of all bilateral trade talks with Beijing and said that the administration will now prioritize trade discussions with other countries.
The introduction of this tariff is in addition to the 20 percent duty already in place and the 34 percent retaliatory duty announced last week. Trump termed it a “reciprocal” tariff and said that it is necessary to protect American industries and workers from China’s alleged unfair trade practices and state-backed subsidies. Trump believes that this move will help reduce the US trade deficit and boost domestic investment.
China has not yet formally responded to this announcement, but it had already warned that if Washington further escalates the trade war, it will “fight to the end”. Beijing imposed a 34 percent retaliatory tariff on US goods last week, which Trump saw as a provocation to his policy. Analysts believe that this tariff war could further escalate tensions between the two countries and disrupt global supply chains.
Global markets witnessed volatility after this announcement. Asian and European indices saw a slight improvement on Tuesday, but investors are still surrounded by uncertainty. Many economists have warned that this trade war could trigger a global recession if it continues for a long time. In particular, it could have an impact on American consumers and businesses, as rising prices of imported Chinese goods could lead to inflation.
White House Press Secretary Caroline Levitt said on Tuesday, “President Trump believes that China wants to make a deal with the US, but they do not know how to start it. If China comes forward for the deal, the President will be extremely generous, but he will always give priority to American interests.” Levitt also claimed that this tariff policy is a response to Nancy Pelosi’s demand 27 years ago, although this claim could not be historically confirmed.
However, the policy has also been widely criticized. Some US lawmakers and business leaders have called it a “source of instability.” Republican Senator Thom Tillis said the strategy could alienate voters and cause long-term economic damage.
Financial institutions such as Goldman Sachs have warned that the tariffs could trigger a recession. In addition, Tesla CEO Elon Musk criticized Trump’s top trade adviser Peter Navarro, calling it a “foolish” policy.
Apart from China, the Trump administration has also imposed tariffs on other countries. Tariffs of 27 percent have been imposed on India, 20 percent on the European Union, 24 percent on Japan and 26 percent on South Korea. These tariffs are in addition to the 10 percent baseline duty. Many countries have threatened retaliation in response to these tariffs, while some have turned to Washington for talks. For example, Italian Prime Minister Giorgia Meloni is scheduled to visit Washington next week to discuss tariffs with Trump.
Analysts believe this tariff war could redefine the global trade order. Some see it as part of Trump’s “America First” policy, while others see it as a dangerous gamble that could destabilise the global economy. Countries like India, which are already grappling with a surge in Chinese imports, are closely studying the situation. Indian trade officials have recently held high-level meetings to assess a potential surge in Chinese exports due to US tariffs.
Meanwhile, Trump has urged his supporters to be patient. He claimed these tariffs will make the US “very rich again” and are already generating $2 billion in revenue per day, although there is no independent evidence available for this claim.
More news from the world
trump announces 50 percent tariffs on china global market impact –
This move of 104 percent tariff on China is part of the Trump administration’s aggressive trade policy. However, its long-term consequences are uncertain. Volatility in global markets, threats of retaliatory tariffs and fears of rising inflation highlight the risks of this policy. As this trade war escalates, the world is watching the next steps of Washington and Beijing.
