US Starts 104% Tariffs on China Despite Global Worries – But Says It’s Open to Talk with Others
The United States has officially started charging 104% extra taxes (tariffs) on goods imported from China, according to Reuters. These new tariffs began just after midnight, even though many people hoped US President Donald Trump would pause or adjust them.
The Trump administration says the tariffs are part of a bigger plan to protect American businesses and push back on what it sees as unfair trade.
But this tough move is already affecting the economy. Reuters reports that US stock markets dropped once the news became official. Around the world, markets had been hopeful, thinking Trump might back down. Instead, the US government confirmed that other countries like South Korea, Japan, and Italy will be invited for trade talks—but not China.
Why China Was Hit So Hard
China was hit with the highest tariff rate of 104%, because they refused to give in to earlier US demands. China called it “blackmail” and said it would fight back. According to Reuters, Trump’s team said they’re not rushing to make peace with China, which is the second biggest economy in the world.
Instead, Trump wants to make custom trade deals with up to 70 countries that have asked for negotiations. However, no quick exceptions or deals will be made for any country right now, the White House confirmed to Reuters.
How This Affects Ordinary People
Many American companies and shoppers are already feeling the impact. Micron, a chipmaking company, told customers it will charge more because of the tariffs. Clothing brands are delaying orders, and stores are waiting to hire new workers. A pair of sneakers made in Vietnam that used to cost $155 will now cost $220 because of new tariffs, says an industry group.
Shoppers are also reacting. Reuters spoke to Thomas Jennings, a 53-year-old at a Walmart in New Jersey, who said he’s buying extra food and supplies before prices go even higher: “I’m buying double of whatever—beans, canned goods, flour, you name it.”
A Reuters/Ipsos poll shows that 3 out of 4 Americans believe prices will go up because of Trump’s tariffs.
Europe Plans to Fight Back
In Europe, leaders are planning their own response. The European Union (EU) may hit back with 25% tariffs on American products like soybeans, nuts, and sausages. Even though some products like bourbon whiskey were left out, the EU says they’re open to negotiating.
Some big European pharmaceutical companies also warned the EU’s top official, Ursula von der Leyen, that these US tariffs could push more companies to leave Europe and move operations to America, according to Reuters.
Bigger Picture: A New Trade War?
This trade tension is shaking up decades of global trade rules, and many fear it could lead to a recession. President Trump believes these steps will protect America’s economy, but others—including business leaders and world governments—are worried it may do more harm than good.
Reuters, which broke down the full story, explained that Trump’s aggressive tariffs are part of a strategy to re-shape global trade, but so far, it’s leading to rising prices, fear of job losses, and uncertainty around the world.
For more updates on this global trade war and what it means for your wallet, stay tuned to our news page, and credit to Reuters for the detailed breakdown.