The US president has stated that the tariffs will remain in place until a “deal” is reached with Beijing.
The United States has significantly increased tariffs to 104% on all goods imported from China, intensifying the existing trade dispute. This action resulted in a $1.5 trillion loss in US stock market value on Tuesday.
Originally, China was slated to face a 34% tariff hike on Wednesday as part of President Trump’s “reciprocal” policy targeting almost all US trading partners. However, after China retaliated with a corresponding 34% tariff, the US president increased the overall tariff to 104%.
“After all the abuses they’ve perpetrated, China is attempting to impose additional unjustified tariffs,” Trump stated at a National Republican Congressional Committee dinner in Washington on Tuesday.
The recent escalation has significantly affected US and global stock markets. Major indices, including the S&P 500, Dow Jones, and Nasdaq, experienced further declines after a brief increase earlier in the week, leading to an estimated $1.5 trillion loss from US markets on Tuesday.
Trump acknowledged the “somewhat explosive” impact of his decision but defended his approach, stating that “sometimes you have to mix it up a little bit.” He asserted that the tariffs were necessary to address perceived trade “abuses” and promote domestic manufacturing, adding that the US is already generating $2 billion daily from these levies.