The United States officially began enforcing a wide array of new tariffs early this morning, fulfilling President Trump’s sweeping trade policy that now affects close to 90 countries — most notably China, which has been hit with a staggering 104% tariff rate.
These newly implemented tariffs follow an earlier 10% baseline rate that went into effect on April 5. The latest round applies both to longstanding U.S. allies and rival nations, part of what the administration calls a broader strategy to reset global trade relationships.
China received the highest duties after retaliating with a 34% tariff on American exports — itself a response to the 34% levy Trump had previously imposed. That tit-for-tat prompted Trump to up the ante with an even harsher penalty.
“It was a mistake for China to retaliate,” White House press secretary Karoline Leavitt said Tuesday. “The president, when America is punched, he punches back harder. That’s why there will be 104% tariffs going into effect on China tonight at midnight.”
The full tariff on Chinese imports now stands at 104%, a combination of a 50% retaliatory duty, a 34% reciprocal tariff, and a previously established 20% charge. These layers of penalties reflect what Trump has framed as a firm response to unfair trade practices.
To the president, this aggressive tariff schedule isn’t just economic policy — it’s a cornerstone of his vision for reclaiming America’s financial independence. Trump sees these moves as a way to tear down foreign protectionism and revive American industry.
Other nations have not been spared. Countries such as Israel, Japan, South Korea, and the European Union are also facing tariffs ranging from 17% to 25%. These rates were crafted by the Council of Economic Advisers, based on each country’s trade imbalance with the United States, in addition to the standard base rate.
Inside the Trump administration, officials report a frenzy of diplomatic activity since the announcement. Foreign governments, alarmed by the steep levies, have been reaching out in an attempt to negotiate better terms.
“The president met with his trade team this morning, and he directed them to have tailor-made trade deals with each and every country that calls up this administration to strike a deal,” Leavitt said, noting, however, that Trump “expects that these tariffs are going to go into effect.”
During a public appearance at the White House on Tuesday, Trump proudly declared the economic impact of his tariff policy, boasting about its immediate fiscal returns.“We’re already taking in almost $2 billion a day in tariffs,” he said.
Still, Trump emphasized a willingness to negotiate on a country-by-country basis.“Not off-the-rack, these are tailored, highly tailored deals,” he said.
At home, the sweeping tariff campaign has had a chilling effect on financial markets. Wall Street reacted swiftly and negatively, with sharp declines across major indices stoking fears of both inflation and a looming economic downturn.
Following last week’s announcement, the S&P 500 suffered a historic drop of 10.5% over two days — its steepest decline since the early days of the pandemic in March 2020. On Tuesday, it slid another 1.5%.
The Dow Jones Industrial Average also took a hit, falling 320 points on the eve of the new tariffs. It now sits more than 10% below its peak from December.
The Nasdaq Composite didn’t fare much better. It tumbled more than 2% on Tuesday, officially entering bear market territory — a drop of 20% or more from its recent high — according to Reuters.
Unless new agreements are made with affected countries, Trump intends to keep the tariffs in place indefinitely. According to his executive order, the tariffs will remain until the administration determines that “the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated.”
{Matzav.com}