MercoPress. South Atlantic News Agency

Trump ups tariffs on Chinese products to 104%

Beijing will have to “make a deal at some point,” Trump stressed

US President Donald Trump has escalated the trade war with China by imposing a 104% tariff on all imports from that country, effective immediately, the White House announced Tuesday. This follows China’s retaliatory 34% tariff on US goods to take effect on Thursday.

Originally, a 34% tariff increase was planned for China as part of Trump’s broader strategy vis a vis nearly all US trade partners, but the rate was raised after Beijing’s response.

Trump justified the move as a counter to China’s alleged trade abuses, claiming the tariffs would generate significant revenue for the US Treasury and promote domestic manufacturing. He acknowledged the tariffs’ “explosive” impact but insisted they were necessary.

The tariffs have caused significant market turmoil, wiping out US$ 1.5 trillion from US stock markets Tuesday and contributing to global market declines, including sharp drops in markets like Japan, Hong Kong, and Taiwan.

The South Korean won, as well as China’s offshore yuan hit historic lows against the US dollar, while oil prices fell significantly.

Washington is pursuing “tailored deals” with trade partners, with some nations like Argentina, Vietnam, and Israel reportedly open to negotiations. Other tariffs include rates of 20% on the European Union, 26% on India, and 49% on Cambodia.

China has condemned the tariffs as “economic bullying” and vowed to fight back, while the EU is urging de-escalation and preparing retaliatory tariffs on US goods like almonds and steel parts, though excluding items like bourbon. Trump remains defiant, framing the tariffs as the US “taking its turn” after years of being “ripped off” by other nations.

“Now it's our turn to do the ripping!” Trump was quoted as saying while bragging that countries were “dying” to strike a deal. He also downplayed comments that he started a trade war. It “is not a war at all,” Trump noted. “They're all coming here; Japan is coming here as we speak.” According to Washington sources, nearly 70 countries had sought negotiations to mitigate the impact of the tariffs.

“After all of the abuses they’ve perpetrated, China is attempting to impose additional unjustified tariffs,” Trump also highlighted. “Until they make a deal with us, that’s what it’s going to be,” the Republican leader insisted. Beijing will have to “make a deal at some point,” Trump stressed.

“Right now, China is paying a 104 percent tariff, think of it… Now, it sounds ridiculous, but they charged us for many items 100 percent, 125 percent,” Trump said. “They’ve ripped us off left and right. But now it’s our turn to do the ripping,” he underlined.

In addition, European Union President Ursula von der Leyen urged Chinese Premier Li Qiang to de-escalate the conflict as EU member states were to vote on a list of US goods to be subject to retaliatory tariffs.