Trump Confirms 104% Tariffs on Chinese Imports As Global Trade War Escalates

President Donald Trump said on Tuesday that “many” countries are seeking trade agreements with the United States, as his administration prepares to implement a new round of steep tariffs on imports from dozens of countries.

The latest escalation targets Chinese goods in particular, with tariffs now reaching a combined rate of 104%.

Beijing has pledged to “fight to the end” if Washington proceeds, after Trump threatened an additional 50% tariff on Chinese exports.

These would be added to a previous 34% increase and an existing 20% levy on Chinese imports.

White House Press Secretary Karoline Leavitt confirmed that the higher tariffs on China will be imposed starting Wednesday.

“President Trump has a spine of steel and he will not break,” Leavitt said. “And America will not break under his leadership.”

Elon Musk, a prominent Trump adviser, has reportedly urged the president to reverse course.

Meanwhile, the New Civil Liberties Alliance—a libertarian group funded by organizations linked to Leonard Leo and Charles Koch—has filed a lawsuit challenging the tariffs as “illegal.”

The new duties exceed the 10% flat rate applied to all global imports last Friday.

Instead, the updated tariffs are customized per country using a formula criticized by economists, based on dividing the trade-in-goods deficit by twice the value of total imports.

Despite days of turbulence following the initial announcement, global markets showed signs of recovery on Tuesday as US officials attempted to reassure investors that some of the new tariffs could be temporary.

However, gains were short-lived.

The S&P 500 dropped 1.6% to 4,982.77, falling below the 5,000 mark for the first time in over a year.

The Dow Jones Industrial Average declined by 0.8%, while the tech-heavy Nasdaq Composite fell 2.2%.

In London, the FTSE 100 gained 2.7%, recovering some losses from last week, which Trump aides dubbed “liberation day.”

Asian markets also rebounded, with Tokyo’s Nikkei 225 climbing 6% and Hong Kong’s Hang Seng Index up 1.5%.

Treasury Secretary Scott Bessent said the tariffs have reached “maximum” levels but suggested that negotiations could reduce them.

“I think you are going to see some very large countries with large trade deficits [with the US] come forward very quickly,” Bessent told CNBC.

“If they come to the table with solid proposals, I think we can end up with some good deals.”

Asked whether the tariffs are meant to prompt talks or serve as permanent measures, Trump replied: “Well, it can both be true.”

“There can be permanent tariffs, and there can also be negotiations.”

On Tuesday, Trump hinted at progress with South Korea.

“Their top TEAM is on a plane heading to the US, and things are looking good,” he wrote on Truth Social.

“We are likewise dealing with many other countries, all of whom want to make a deal with the United States.”

He added: “‘ONE STOP SHOPPING’ is a beautiful and efficient process!!! China also wants to make a deal, badly, but they don’t know how to get it started. We are waiting for their call. It will happen!”

In the UK, Chancellor Rachel Reeves addressed market volatility concerns, telling Parliament she had spoken with Bank of England Governor Andrew Bailey, who assured her the “markets are functioning effectively and that our banking system is resilient.”

Reeves said a trade war “is in nobody’s interest” and confirmed the UK is pursuing a new trade deal with the US.

Trump has imposed a 10% tariff on UK exports in line with the new global benchmark.

Reeves declined to endorse a “buy British” campaign proposed by the Liberal Democrats.

“In terms of buying British, I think everyone will make their own decisions,” she said.

“What we don’t want to see is a trade war, with Britain becoming inward-looking.”

In contrast, China struck a defiant tone.

A Xinhua editorial called Trump’s stance “naked extortion.”

“Utterly absurd is the underlying logic of the United States: ‘I can hit you at my will, and you must not respond. Instead, you must surrender unconditionally,’” the state news outlet wrote.

“This is not diplomacy. It is blunt coercion dressed up as policy.”

A 1987 speech by former US President Ronald Reagan, in which he criticized tariffs for prompting retaliation and harming the US economy, went viral on Chinese social media.

The clip, shared by China’s foreign ministry, “has a new meaning in 2025,” reported the state-run outlet the Paper.

Bessent argued on Tuesday that China would be making a “big mistake” if it retaliated.

“They’re playing with a pair of twos,” he said on CNBC.

“What do we lose by the Chinese raising tariffs on us? We export one-fifth to them of what they export to us, so that is a losing hand for them.”