Trump's 104% tariff on China takes effect at midnight, eliminating earlier market growth
The U.S. said Tuesday that even if the Trump administration quickly begins talks with other trading partners targeted by President Donald Trump's comprehensive tariff plan, the 104% tariff on imports from China will take effect after midnight.
U.S. stocks retreated news. Global markets have previously been hoped that Trump might be willing to negotiate a range of national and product-specific trade barriers he has established around the world's largest consumer market.
The government has arranged talks with South Korea and Japan, two close allies and major trading partners, Italian Prime Minister Giorgia Meloni will visit next week.
However, the White House made it clear that as planned, up to 50% of country-specific tariffs will take effect at 12:01 a.m. ET.
These tariffs are particularly sharp for China as Trump announced last week's anti-election responsibility for imports has increased to 104%. China refuses to surrender to so-called “blackmail” and vows to “fight.”
Government officials said they would not prioritize negotiations with the world's second economic power.
As the trade war between the two escalates, China is in a vulnerable location. Andrew Chang then explains why the math used to determine President Donald Trump's global reciprocity tariffs is misleading.
“No waiver…in the short term”
Trump's widespread tariffs have increased concerns about a recession and upended decades of global trading order.
“At present, we have received guidance to prioritize our allies and trading partners, etc. Japan and South Korea,” White House economic adviser Kevin Hassett said in Fox News.
The White House said Trump directed his trade team to establish a “tailor-made” deal for nearly 70 countries that were in contact with talks. Trump's chief trade negotiator Jamieson Greer told Congress that his office is working hard to work quickly but is not facing a specific deadline.
“The president is clear again that he has no exemptions or exceptions in the short term,” Greer told lawmakers.
China is preparing for a war of loss, with manufacturers warning about profits and scrambling to plan new overseas factories. Citi cites the increase in external risks, reducing its 2025 GDP growth forecast to 4.2%, from 4.7%.
Three-quarters of Americans expect prices to rise as Trump’s tariffs begin, according to a Reuters/IPSOS poll.
Consumer inventory
Chipmaker Micron told customers it will impose tariff-related surcharges starting Wednesday, while U.S. apparel retailers say they are postponing orders and postponing hiring. According to an industry group, Vietnam's retail running shoes now retail for $220 for $155 when Trump's 46% tariffs on the country came into effect.
Consumers stock when possible. “I'm buying anything twice as much – beans, canned food, flour, you said,” Thomas Jennings, 53, said in a shopping cart in the aisle at Walmart, New Jersey.
The stock market found a stronger stance Tuesday after having spent a tough few days for investors, which prompted some business leaders, including those near Trump, to urge the president to reverse the route.
European stocks fell 14-month lows after four consecutive sales, while global oil prices steadily declined after falling to four-year lows. Wall Street's main index released earnings earlier in the day, but the White House said China's tariffs would take effect.
Markets in Asia, Europe and North America were issued Tuesday after losses on Tuesday after U.S. President Donald Trump announced global tariffs. Meanwhile, China vowed to “fight to the end” and held controversial consultations with the World Trade Organization.
