U.S.-China Trade War Escalates as Trump Slaps 104% Tariff on Imports

The United States has intensified its trade confrontation with China, rolling out a cumulative 104% tariff on Chinese goods starting today. The dramatic escalation follows President Donald Trump’s demand that Beijing reverse its 34% duties on American products. 

The hike comes in three waves—20% in March, 34% last week, and another 50% this week—marking one of the boldest moves in recent trade history.

The announcement coincided with Chinese Premier Li Qiang’s warning against “unilateralism, protectionism, and economic coercion” during a call with EU Commission President Ursula von der Leyen. Li emphasized China’s capacity to absorb economic shocks and defend international trade norms.

White House Press Secretary Karoline Leavitt reaffirmed the administration’s stance, stating there would be no delays: “President Trump is putting Americans first.”

In retaliation, China had already imposed matching 34% tariffs on U.S. exports from April 10 and pledged more “resolute countermeasures.” Beijing also tightened export controls on critical rare-earth materials, a move likely to disrupt tech supply chains.

The trade spat has rattled global financial markets. The S&P 500 has slid 20% since February highs, the Dow is down over 17%, and the Nasdaq officially entered bear market territory. In Asia, Hong Kong’s Hang Seng Tech Index has plunged 27% in just a month, and China’s yuan continues to weaken as bond markets rally in flight to safety.

Compounding the tension, the U.S. has also announced a new 26% tariff on Indian imports, widening the scope of its trade push