The United States has set in motion its plan to impose 104% tariffs on imports from China, sparking widespread market turmoil and concern about rising prices for American consumers.
As of midnight on Wednesday, the new tariffs will take effect, marking a significant escalation of the ongoing trade tensions between Washington and Beijing. The move is expected to have far-reaching consequences for global trade, economic growth, and corporate profits.
S&P 500 companies have lost over $5.8 trillion in market value since Trump’s tariff announcement last week, with the benchmark index now close to a 20% decline from its peak in February. Global markets had previously seen gains on hopes of negotiations between the US and China, but those expectations have been dashed.
The White House has scheduled talks with South Korea and Japan, two key trading partners, as part of its efforts to address growing concerns about trade imbalances. However, the administration remains committed to its hardline stance against Beijing, which it claims is engaging in unfair trade practices.
China has vowed to fight back against what it calls “blackmail” from Washington, with manufacturers warning of rising costs and potential relocation of production overseas. The move has already sparked concerns about global economic growth, with Citi cutting its 2025 China GDP forecast to 4.2% from 4.7%.
Canada and Mexico have also responded to the US tariffs by imposing countermeasures on certain goods, while European countries are mulling their own retaliatory measures.
As Americans prepare for higher prices, a Reuters/Ipsos poll found that three out of four consumers expect prices to rise as a result of Trump’s tariffs. Companies such as Micron and Walmart have already announced plans to impose tariffs-related surcharges on certain products.
With the market slide prompting concerns about recession, business leaders are urging President Trump to reconsider his approach to trade policy. The European Commission has also warned of potential tariffs on US goods, including bourbon whiskey.
The imposition of these tariffs marks a significant escalation in the ongoing trade tensions between the US and China, with far-reaching consequences for global markets and economies.
Source: https://www.reuters.com/world/china-criticises-trump-tariff-blackmail-market-turmoil-settles-2025-04-08