The United States announced on Tuesday that a steep 104% tariff on Chinese imports will take effect just after midnight, signaling a firm stance by the Trump administration even as it begins negotiations with key allies over broader trade concerns.
The news sent U.S. stock markets into retreat, reversing earlier global gains that had been fueled by optimism that President Trump might soften his approach toward the growing web of trade restrictions targeting numerous countries and goods.
While Washington is preparing for talks with close allies such as South Korea and Japan, and with Italian Prime Minister Giorgia Meloni scheduled to visit next week, the White House confirmed that the country-specific tariffs — some as high as 50% — will be implemented at 12:01 a.m. Eastern Time (0401 GMT), as originally planned.
China, however, faces the most aggressive increase, with tariffs jumping to 104%. The move is a direct response to retaliatory duties announced by Beijing last week. China has condemned the U.S. tariffs, calling them “blackmail,” and has vowed to “fight to the end.”
Despite the intensifying trade standoff, U.S. officials say they will not prioritize negotiations with China at this time. Instead, the administration is focusing on strengthening economic ties with strategic partners.
“We’ve been directed to prioritize talks with allies like Japan and Korea,” said White House economic adviser Kevin Hassett in an appearance on Fox News.
President Trump has directed his trade team to craft customized agreements with the nearly 70 nations that have reached out for discussions. Jamieson Greer, the administration’s chief trade negotiator, told Congress that while talks are progressing, no specific deadline has been set.
“The president has made it clear that exemptions or exceptions are not on the table for now,” Greer told lawmakers.
Meanwhile, China is preparing for a prolonged trade battle, with manufacturers concerned about profit margins and considering moving production abroad. Reflecting these growing risks, Citi has downgraded its 2025 growth forecast for China’s GDP from 4.7% to 4.2%.
President Trump’s wide-reaching tariff strategy has raised concerns over a potential global economic slowdown and disrupted long-standing trade norms that have shaped international commerce for decades.