The United States will impose a 104% tariff on goods from China starting at 12:01 a.m. EDT on Wednesday, White House Press Secretary Karoline Leavitt announced during a briefing on Tuesday.
The decision follows through on a threat President Donald Trump made Monday on Truth Social, where he said the U.S. would significantly raise tariffs on Chinese imports. Beginning Wednesday, the White House will start collecting these new tariffs as part of a broader trade strategy targeting China.
On Monday, Mr. Trump warned that an additional 50% tariff would be placed on Chinese imports after China announced a 34% import fee on American products. China’s move was in response to Mr. Trump’s earlier declaration that the U.S. would impose a 34% tariff on all Chinese goods, a measure specifically aimed at Beijing.
In his post, Mr. Trump also said that the U.S. would end all negotiations with China, while continuing trade talks with other nations.
China’s Commerce Ministry responded on Tuesday, saying Beijing would “fight to the end” and take countermeasures unless Mr. Trump reversed his threat.
During the Tuesday briefing, Leavitt explained that the retaliatory tariffs on nearly 90 countries are intended to encourage trade talks with the U.S.
“To countries around the world, bring us your best offers and he will listen,” Leavitt said, referring to President Trump. “Deals will only be made if they benefit American workers.”
She noted that 70 countries have already contacted the White House to begin discussions, aiming to reduce their tariff rates in return for concessions the president believes will benefit the United States.
“On the other hand, countries like China, who have chosen to retaliate and try to double down on their mistreatment of American workers are making a mistake,” Leavitt added.
She also restated Mr. Trump’s strong position on bringing manufacturing back to the U.S.
“President Trump has a spine of steel and will not break,” she said, emphasizing the need for a self-reliant economy. “A strong America cannot be solely dependent on foreign countries for our food, medicines and critical minerals.”
However, critics have raised concerns about the potential economic consequences of the escalating tariff agenda. Some Wall Street leaders warn the measures could increase inflation and slow economic growth.
“Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” JPMorgan Chase CEO Jamie Dimon wrote in his annual letter to shareholders on Monday.
Goldman Sachs economists also raised the likelihood of a U.S. recession following the tariff announcement. On Monday, they increased their 12-month recession forecast to 45%, up from 35% previously. The bank cited tightening financial conditions, consumer boycotts, and policy uncertainty as reasons for the downgrade, warning these factors are “likely to depress capital spending” more than earlier expected.
