U.S. Tariffs on Chinese Imports to Surge Over 104% Amid Escalating Trade War
April 9, 2025 – In a dramatic escalation of trade tensions, the United States is set to impose new tariffs that will push the total rate on Chinese imports to over 104% starting Wednesday, the White House announced. These sweeping measures are part of President Donald Trump’s “reciprocal tariffs” strategy aimed at countering China's retaliatory trade actions.
New Tariff Breakdown
The U.S. had already scheduled a 34% increase in duties on Chinese goods this week. However, after China reaffirmed its intention to impose reciprocal tariffs of the same magnitude on U.S. exports, President Trump authorized an additional 50% hike, resulting in a combined increase of 84% atop existing tariffs.
White House Press Secretary Karoline Leavitt stated, “President Trump has a spine of steel. He will not back down while American workers are mistreated.” She also emphasized that the administration is open to “tailor-made” trade deals but declined to specify any terms for negotiation with Beijing.
Impact on Markets and Consumers
The news sent ripples through financial markets. The Dow Jones Industrial Average dropped 320 points (0.84%), while the S&P 500 fell 1.57%, and the Nasdaq Composite tumbled 2.15%. Asian markets mirrored the decline, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng both opening 3% lower.
Adding to the policy shift, Trump signed an executive order late Tuesday removing the “de minimis” tariff exemption for Chinese packages under $800 in value. These goods—popular on platforms like Shein, Temu, and AliExpress—will now be subject to a 90% tariff, up from the previously planned 30%.
China Responds with Retaliatory Threats
China’s Ministry of Commerce condemned the tariff hike, calling it “a mistake upon a mistake” and vowing further countermeasures. Proposed retaliatory steps include higher tariffs on U.S. agricultural exports, import bans on American poultry, and a potential halt in fentanyl cooperation. There may also be new restrictions on U.S. legal and entertainment services and investigations into American IP earnings in China.
“China does not provoke trouble, but it is not afraid of it either,” wrote Liu Hong of the Xinhua News Agency, reflecting the government’s hardened stance.
Trade Relations at a Crossroads
In 2024, China remained the second-largest supplier of goods to the U.S., with $439 billion in exports. In return, the U.S. shipped $144 billion worth of goods to China. As tariffs surge to a near-average of 125% on Chinese imports, fears are growing over domestic layoffs and increased consumer costs in sectors reliant on Chinese products like electronics, toys, and smartphones.
President Trump’s strategy also includes new tariffs ranging from 11% to 50% on products from dozens of other countries and the European Union. Despite ongoing discussions with world leaders, the administration appears resolute.
“He expects these tariffs to go into effect,” Leavitt said on Tuesday. “The president is focused on defending American interests at any cost.”