U.S. hits China with 104% duties, markets react

The U.S. has imposed 104% tariffs on Chinese imports, escalating trade tensions as China vows to retaliate. Talks are planned with allies like Japan and South Korea, but not China. Markets plunged, with the S&P 500 nearing bear territory and US$ 5.8 trillion wiped from market value since the tariff announcement last week.

On Tuesday, the United States announced that 104% tariffs on Chinese imports will be implemented just after midnight, while the Trump administration moves quickly to initiate discussions with other trading partners affected by President Donald Trump’s extensive tariff strategy. The White House confirmed that the tariffs—reaching up to 50% for some countries—will take effect as scheduled at 12:01 a.m. Eastern Time (0401 GMT). 

China faces the harshest penalties, with tariffs on its goods climbing to 104%, in retaliation for Beijing’s counter-tariffs announced last week. China has denounced the move as blackmail and has vowed to resist fully. White House Press Secretary Karoline Leavitt had announced on Monday that the U.S. has imposed an 84% tax on all Chinese goods, bringing the total tariffs on imports from China to a minimum of 104%.

U.S. officials have made it clear that they are not prioritizing negotiations with China, the world’s second-largest economy. The administration’s aggressive trade stance has heightened fears of a global recession and disrupted the international trade order that has held for decades. As tensions escalate, China is preparing for a prolonged economic standoff, while manufacturers warn of falling profits and scramble to shift production to new overseas locations.

U.S. markets continued to reel, with the S&P 500 falling for the fourth straight session since Trump unveiled his tariff plan last week. The index closed below 5,000 for the first time in nearly a year and is now down 18.9% from its February 19 peak—dangerously close to the 20% decline that marks a bear market. Since the tariff announcement last Wednesday, S&P 500 companies have shed US $5.8 trillion in market value, marking the largest four-day loss in the index’s history, according to LSEG data. Markets had previously climbed on hopes that Trump might backtrack or soften the planned country- and product-specific trade barriers. 

While the administration has scheduled talks with close allies South Korea and Japan, and is set to welcome Italian Prime Minister Giorgia Meloni next week, it has shown no such willingness when it comes to China.