UPDATE: President Donald Trump has announced an immediate tariff increase on China to 125% while granting a 90-day tariff reduction to 10% for over 75 other countries.
Trump announced the tariff change on Truth Social, writing that it was due to China’s “lack of respect for the World’s Markets.”
The Trump administration announced on Tuesday that a 104% tariff on China will take effect just after midnight, intensifying the trade standoff with Beijing even as the Trump administration races to open talks with other key trading partners impacted by the president’s sweeping tariff strategy.
The U.S. stocks have jumped as President Trump’s tariff negotiating begins. Global markets had previously rallied on optimism that upcoming diplomatic engagements could ease tensions.
Despite the administration’s efforts to schedule negotiations with close allies such as South Korea and Japan—both vital trading partners—White House officials confirmed that the tariffs would be implemented as scheduled at 12:01 a.m. Eastern Time.
China, the primary target of Trump’s tariff offensive, will face the heaviest blow. The administration ratcheted up duties to 104% in retaliation for Beijing’s own counter-tariffs announced last week. Chinese officials have rejected Washington’s pressure, calling it “blackmail,” and have vowed to resist fully.
White House: There will be 104% tariffs going into effect tonight on China at midnight. pic.twitter.com/xayDz43oCr
— unusual_whales (@unusual_whales) April 8, 2025
“We are not prioritizing negotiations with China at this time,” a senior administration official said, underscoring the White House’s current focus on reshaping trade relationships with other nations. “Our priority right now is to work closely with allies and like-minded partners to craft mutually beneficial deals.”
White House economic adviser Kevin Hassett told Fox News that Trump’s team has been instructed to prioritize countries that have reached out seeking dialogue, including Japan, South Korea, and European nations.
Trump’s chief trade negotiator, Jamieson Greer, told lawmakers that nearly 70 countries have expressed interest in trade talks. However, he emphasized that the administration is not working against a fixed deadline and that exemptions or exceptions would not be granted “in the near term.”
China, meanwhile, is preparing for a prolonged economic battle. U.S. companies with exposure to Chinese supply chains are bracing for higher costs.
Micron Technology said it would begin passing on tariff-related surcharges to customers starting Wednesday. Retailers, particularly in clothing and footwear, are delaying orders and cutting back on hiring.
Running shoes manufactured in Vietnam that currently sell for $155 could surge to $220 once a 46% tariff on that country takes effect.
In Europe, leaders are weighing a potential response. The European Commission is considering 25% counter-tariffs on U.S. products such as soybeans, sausages, and nuts. While items like bourbon whiskey have been spared for now, officials say they remain open to negotiations.
The European bloc is already grappling with U.S. tariffs on automobiles and metals, with another round of 20% tariffs on EU exports expected to hit Wednesday. Trump has also floated the idea of targeting European alcoholic beverages next.
European pharmaceutical companies have voiced concern to European Commission President Ursula von der Leyen, warning that Trump’s tariffs could push more industry investment away from Europe and toward the United States.