In a dramatic escalation of US-China trade tensions, US President Donald Trump has imposed a sweeping 104 per cent tariff on Chinese imports, effective tonight. The move comes after Beijing refused to lift its retaliatory tariffs on American goods. White House Press Secretary Karoline Leavitt confirmed the development, stating that enforcement of the new tariffs would begin collection starting April 9, according to FOX Business.

The White House framed the decision as a necessary response to China’s “unfair trade practices,” including intellectual property theft, state-sponsored subsidies, and currency manipulation. The administration emphasised the goal of “leveling the playing field” in global trade.

Broad Impact On Chinese Imports

The new tariff rate is expected to affect a wide range of Chinese products, from electronics and consumer goods to textiles. Analysts warn of potential disruptions in global supply chains and price hikes for American consumers. This marks the sharpest tariff increase between the two countries since the early trade wars during Trump’s previous presidency.

Earlier this week, Trump had issued a stark warning: China would face a 104 per cent tariff, an additional 50 per cent on top of the existing 34 per cent, if it failed to reverse its retaliatory tariffs within 24 hours. Beijing refused, and the White House acted on its threat.

China Strikes Back With Rare Earth Export Controls

In a countermove, China’s Finance Ministry announced new export restrictions on key rare-earth elements, such as samarium, gadolinium, terbium, and lutetium, effective from April 4. These minerals are essential to high-tech manufacturing, including military hardware and green energy technologies.

White House Confirms Immediate Implementation

Leavitt stated, “104 per cent additional tariffs went into effect at noon Eastern Time because China has not removed its retaliation. The additional tariff will be collected starting tomorrow, April 9.”

Global financial markets initially dropped on fears of economic instability and trade disruption. However, US markets later showed signs of recovery after Trump’s clear stance and efforts to stabilize investor confidence.