GUWAHATI: A new phase in the U.S.-China trade dispute has begun, as President Donald Trump’s latest round of sweeping tariffs officially took effect. Imports from China are now subject to a staggering 104% tariff, the highest rate ever imposed under the administration's escalating trade strategy. The move is part of a broader tariff expansion targeting roughly 60 countries, which the president has labelled as the “worst offenders” in unfair trade practices.
In retaliation, China swiftly announced it would raise its own tariffs on American goods to 84%, vowing to “fight to the end” if Washington continues what it described as a provocation.
Global financial markets responded sharply to the developments, with major indices suffering heavy losses wiping out trillions in value. Investors are increasingly anxious about rising prices, supply chain disruptions, and growing fears of a potential recession.
During a Republican Party dinner in Washington, President Trump acknowledged the economic turbulence but defended his strategy. “It’s been somewhat explosive,” he said of the fallout, “but money is pouring in.” While admitting that the 104% tariff "sounds ridiculous," Trump insisted that China was under pressure to negotiate. “They want to make a deal,” he claimed, “They just don’t know how to start because they’re proud.”
The White House rolled out a sequence of tariff hikes, starting with a 20% levy earlier this year, followed by an additional 34%, before threatening another 50% when Beijing responded in kind. Trump went forward with the full 104% rate after China refused to scale back its own tariffs, leading to the latest tit-for-tat escalation.
The tariffs extend beyond China. Japan and South Korea are now facing import duties of 24% and 25% respectively, while India (26%), Vietnam (46%), and Cambodia (49%) are also affected. The European Union, hit with a 20% tariff, has proposed mutual reductions on industrial tariffs, which Trump welcomed but called "still not enough." The EU is expected to announce retaliatory measures in response to earlier U.S. tariffs on steel and aluminium.
Amid global backlash, delegations from Tokyo and Seoul are heading to Washington for trade talks. Over 70 countries, Trump claimed, have reached out for negotiations since the tariff plan was announced. “They’re calling us up, kissing my ass,” he said at the dinner. “They’re dying to make a deal.”
China, however, remains firm. A foreign ministry spokesperson accused the U.S. of abusive tactics and called for dialogue based on “mutual respect and equality.” A white paper issued by Beijing reaffirmed China's willingness to continue discussions but criticized Washington’s approach.
Meanwhile, economic uncertainty continues. European and Asian stock markets plunged further Wednesday, with the FTSE 100 down 2.5% and Japan’s Nikkei dropping 4.3%.
Adding to the political drama, internal White House tensions have surfaced. Tesla CEO Elon Musk publicly clashed with trade adviser Peter Navarro, calling him “dumber than a sack of bricks.”
Despite the backlash, President Trump remains bullish on his tariff policies, predicting they will be “legendary — in a positive way.”
