Breaking news! Another 50%! The White House has imposed a total of 104% tariffs on China

On April 9, 2025 (Tuesday, Eastern Time), White House Press Secretary Carolyn Levitt announced that starting at 12:01 a.m. local time on Wednesday (April 10), the United States will impose an additional 50% tariff on all Chinese imports, totaling 104% tariffs this year.

This increase includes three parts:

• The 34% "reciprocal tariff" announced on April 3;

• The 20% tariff that had already taken effect;

• The 50% tariff added on April 9.

• Combined with the 25% tariff and the base rate since 2018, the actual tariff rate on Chinese goods after April 10 will reach "base rate + 129%".

China's countermeasures

• In response to the 34% tariff imposed by the United States on April 3, China announced on the same day that it would simultaneously impose a 34% tariff on goods imported from the United States.

• In the face of further threats from the United States, the Chinese Ministry of Foreign Affairs clearly stated: "We will not accept any pressure and threats, and will resolutely take necessary measures to safeguard our legitimate rights and interests."

Domestic reaction in the United States

Market shock

After the news was announced, the three major U.S. stock indexes turned from rising to falling, and the Nasdaq index closed down more than 2%.

Political differences

• Republican Senator Tillis questioned the effectiveness of tariffs and worried about causing voter dissatisfaction;

• Democratic Senator Wyden criticized Trump's policies for making the U.S. economy an "international laughing stock";

• Members of the two parties in the House of Representatives jointly proposed the "2025 Trade Review Act" to limit the president's tariff power.

Corporate protests

• Tesla CEO Musk publicly criticized White House trade adviser Navarro, calling his policies "stupid" and calling for the abolition of tariffs;

• Levi's, the founder of the University of Chicago and other corporate and academic representatives criticized that tariffs will harm the interests of the middle class, leading to IPO delays and rising consumer prices.

International dynamics

• The EU and China are exploring the establishment of a "trade diversion mechanism" to deal with the global supply chain chaos that may be caused by US tariffs.

Event Focus

• The Trump administration is divided on tariffs, and Musk and Navarro's public dispute is seen as a microcosm of policy confusion;

• Analysts believe that this tariff escalation may intensify the Sino-US trade war and further impact the global supply chain and inflation levels.

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