UPDATE: President Donald Trump has announced an immediate tariff increase on China to 125% while granting a 90-day tariff reduction to 10% for over 75 other countries.
Trump announced the tariff change on Truth Social, writing that it was due to China’s “lack of respect for the World’s Markets.”
The Trump administration announced on Tuesday that a 104% tariff on China will take effect just after midnight, intensifying the trade standoff with Beijing even as the Trump administration races to open talks with other key trading partners impacted by the president’s sweeping tariff strategy.
The U.S. stocks have jumped as President Trump’s tariff negotiating begins. Global markets had previously rallied on optimism that upcoming diplomatic engagements could ease tensions.
Despite the administration’s efforts to schedule negotiations with close allies such as South Korea and Japan—both vital trading partners—White House officials confirmed that the tariffs would be implemented as scheduled at 12:01 a.m. Eastern Time.
China, the primary target of Trump’s tariff offensive, will face the heaviest blow. The administration ratcheted up duties to 104% in retaliation for Beijing’s own counter-tariffs announced last week. Chinese officials have rejected Washington’s pressure, calling it “blackmail,” and have vowed to resist fully.