Starting tomorrow at 12:01 a.m. ET, goods coming to the US from China will be subject to a fee of 104% of their value.
How did we get here? It took a little more than two months for tariffs and counter-tariffs between the two countries to escalate.
As the chart above shows, President Trump announced the first set of 10% tariffs on China soon after he took office. On Feb. 1, the White House laid out a tariff program for Canadian, Mexican, and Chinese imports. While the tariffs on Mexico and Canada were delayed, the duties on China went forward.
Nearly four weeks later, Trump issued another volley in the form of another 10% tariff. The president cited the influx of synthetic opioids into the US as the impetus.
Fast-forward to April 2, “Liberation Day,” as the president called it. Trump unveiled a sweeping new “reciprocal” tariff program that called for an additional 34% tariff on Chinese goods. The tariffs were cumulative, meaning China’s tariff rate would rise to 54% starting April 9.
China countered with a 34% tariff on US goods, and the stock market sold off on mounting trade war and economic growth fears.
Trump upped the ante after China’s retaliation, posting on social media Monday that the US would tack on an additional 50% if Beijing did not withdraw its 34% tariff retaliation. On Tuesday morning, the Chinese Ministry of Commerce responded by declaring it would “fight to the end” in the renewed trade war.
So Trump moved forward with the additional 50% tariff set to begin Wednesday, bringing the total rate to 104%.
The post China, EU hit back with tariffs on US goods as Trump’s sweeping duties take effect appeared first on Yahoo Finance.
