The U.S.–China trade conflict entered a volatile new phase Monday after the White House confirmed a dramatic escalation in tariffs on Chinese imports.
According to Fox Business reporter Edward Lawrence, “White House Press Secretary says 104% additional tariffs went into effect at noon Eastern time because China has not removed its retaliation. The 104% additional tariff will be collected starting tomorrow April 9th.”
The steep new tariffs follow President Trump's threat last week to impose punitive measures if China didn’t roll back its retaliatory 34% tariffs. Beijing refused, prompting a response that significantly raises the stakes in a trade standoff already rattling global markets.
China’s Commerce Ministry called the move “a mistake on top of a mistake” and vowed to “fight to the end.”
Markets wasted no time reacting. Bitcoin (BTC), which had soared to $109,000 following Trump’s inauguration in January, fell to $77,657 on Monday—a stunning reversal that has pared back the so-called “Trump rally” in crypto to just 15%. Ethereum (ETH) dropped to $1,504, also down sharply.
With inflation still sticky, unemployment rising, and consumer confidence faltering, the prospect of a full-blown trade war is raising serious fears of a policy-driven recession.
China vows to 'fight to the end'
China has issued a stern response after U.S. President Donald Trump imposed a staggering 104% cumulative tariff on Chinese imports, marking a new peak in the ongoing trade war between the world’s two largest economies.
In a dramatic escalation, Trump’s administration layered a new 50% tariff on top of earlier hikes — first 20% in February, then 34% in March — after Beijing refused to lift its retaliatory 34% duty on American goods.
Beijing swiftly condemned the move, calling it a form of “blackmail,” and vowed to “fight it to the end.”
Speaking in a call with European Commission President Ursula von der Leyen, Chinese Premier Li Qiang said the country is well-positioned to “fully offset” the economic impact. “China’s macroeconomic policies this year have fully taken account of various uncertainties,” Li said, adding that the response is about more than just national interests. “It’s to defend international trade rules.”
Labeling Trump’s latest action as “unilateralism, protectionism and economic coercion,” Li emphasized that “protectionism leads nowhere — openness and cooperation are the right path for all,” according to a Bloomberg report.