Trump imposes 104% China tariffs amid escalating trade war

U.S.-China trade tensions surge as Trump enforces sweeping tariffs on Chinese imports.

U.S. President Donald Trump speaks to the media before boarding Marine One on the South Lawn of the White House on April 3, 2025, in Washington, DC. Photo by Andrew Harnik/Getty Images

By Anna Fadiah and Hayu Andini

President Trump imposes 104% China tariffs amid escalating trade war, deepening economic tensions between the world's two largest economies. Starting Wednesday, April 9, the United States will enforce a sweeping round of import tariffs against China, with rates reaching as high as 104%. This decision represents one of the most aggressive steps taken by the Trump administration during his second term and is expected to spark significant reverberations across global markets.

White House Press Secretary Karoline Leavitt confirmed the move, stating that countries like China “who choose to retaliate and try to double down on their mistreatment of American workers have made a mistake.” Speaking to CNN, Leavitt emphasized that the administration believes China has consistently exploited trade relationships to the detriment of American industry and labor.

Though President Trump has previously levied tariffs on Chinese goods, this latest round far exceeds prior measures and appears intended as both punishment and pressure. Last week, Trump announced plans for a 34% increase, but Beijing quickly responded with a matching 34% retaliatory tariff. In response, Trump raised the stakes again — this time threatening an additional 50% tariff hike if China did not back down by Tuesday afternoon, April 8. China, however, remained defiant.

China holds firm as trade war intensifies

China’s Ministry of Commerce issued a strong statement opposing the tariff escalation, calling Trump’s actions “one mistake after another.” They reaffirmed their intention to respond proportionately, stating that they would “step up retaliation” if the United States continued on its current path.

In 2024, China was the second-largest source of American imports, supplying $439 billion worth of goods to the U.S., while the U.S. exported only $144 billion to China. This growing trade imbalance has long been a point of contention for Trump, who accuses China of manipulating trade rules and failing to uphold fair business practices.

The new 104% tariff — a combination of prior duties and new increases — applies broadly to nearly all categories of imports from China. This includes electronics, machinery, textiles, consumer goods, and industrial components. American businesses that rely heavily on Chinese manufacturing now face higher costs and increasing uncertainty.

Economic fallout and domestic industry concerns

While Trump frames the move as a necessary correction to years of unfair trade, many in the U.S. business community fear the broader impact. Increased tariffs could mean higher prices for American consumers and supply chain disruptions across sectors ranging from retail to manufacturing.

Economists warn that retaliatory measures from China could disproportionately affect U.S. exporters, particularly in agriculture, technology, and automotive industries. China has a long history of targeting politically sensitive sectors when responding to tariffs, including soybeans, pork, and aircraft parts.

Small and medium-sized American enterprises, many of which rely on affordable Chinese goods, are bracing for price hikes and potential layoffs. Some industry leaders have called for a more measured approach, arguing that long-term economic damage could outweigh short-term political gains.

Trump’s strategic calculus and election narrative

President Trump has framed his tariff strategy as part of a broader campaign to restore American manufacturing and protect national interests. In recent speeches, he has tied the trade war to issues like immigration, national security, and even drug enforcement, accusing China of enabling fentanyl smuggling and undermining U.S. sovereignty.

“China has been profiting off the back of the American worker for too long,” Trump said during a campaign rally in Ohio last week. “We’re not going to let them cheat us anymore.”

This narrative plays well with Trump's political base, particularly in Rust Belt states where factory closures and job losses have long been attributed to globalization and outsourcing. By escalating the tariff war, Trump seeks to position himself as a defender of American industry ahead of the 2026 midterm elections.

However, critics argue that the administration lacks a clear exit strategy. Despite asserting that “China wants to make a deal,” Trump has not outlined specific conditions under which the tariffs might be rolled back. Without concrete negotiations or diplomatic engagement, the likelihood of a resolution remains low.

Global implications of the U.S.-China tariff battle

Beyond bilateral tensions, the ongoing trade war has significant implications for the global economy. Market analysts have expressed concern that prolonged hostilities could lead to slowed growth, reduced investment, and increased financial volatility.

Major stock indices have already shown signs of strain, with tech and manufacturing sectors experiencing notable dips. International financial institutions, including the International Monetary Fund (IMF), have urged both nations to pursue dialogue and avoid further escalation.

The European Union and other global trading partners are also watching the situation closely. Many fear that disruptions to U.S.-China trade could have a domino effect, leading to reduced demand, increased inflation, and disrupted global supply chains.

A protracted standoff or a path to resolution?

As the tariffs take effect, both Washington and Beijing appear unwilling to blink first. With national pride, economic power, and political capital at stake, the trade war may drag on longer than many anticipated. Analysts suggest that unless a backchannel of negotiations is opened soon, the stalemate could last through the end of 2025.

In the meantime, businesses on both sides of the Pacific are being forced to adapt. Some American companies are considering shifting production to other countries like Vietnam, India, or Mexico. Chinese exporters, too, are exploring new markets in Africa, Southeast Asia, and Latin America.

Despite the tension, there remains cautious optimism among some observers that practical necessity will eventually drive both nations back to the table. “Trade wars are ultimately lose-lose,” said one economist at the Brookings Institution. “Even the most powerful economies can only absorb so much disruption before they seek compromise.”

Tariffs as tools and risks

President Trump’s decision to impose 104% tariffs on Chinese imports marks a defining moment in his economic policy and foreign diplomacy. Whether this strategy succeeds in forcing change or simply hardens China’s position remains to be seen. For now, American consumers, businesses, and workers must brace themselves for a period of heightened uncertainty and economic strain.

As President Trump imposes 104% China tariffs amid escalating trade war, the world watches anxiously. The next moves — from both Washington and Beijing — could reshape global trade for years to come.