Trade tensions flare as Trump administration enforces sharp tariff hike in response to China’s inaction
The U.S. has announced a sweeping escalation in its trade battle with China, imposing a total tariff of 104% on Chinese imports after Beijing failed to roll back its retaliatory trade duties by a set deadline.
White House Press Secretary Karoline Leavitt confirmed on Tuesday that the new tariffs—an additional 50% on top of existing 20% and 34% rates—took effect at noon Eastern Time, with customs collections beginning Wednesday.
The administration’s move follows China’s refusal to lift its countermeasures that were originally enacted in response to former President Donald Trump’s earlier tariffs on Chinese goods.
“The president’s position has been clear from the start—America wants fair trade that benefits its workers,” Leavitt said during a press briefing. “Those willing to negotiate in good faith will be heard. But those who retaliate should expect a firm response.”
Leavitt pointed to China’s retaliatory stance as a cautionary tale for other global trading partners, emphasizing that punitive actions against U.S. industries would not go unanswered.
“China made a conscious decision to continue exploiting American labor and supply chains,” she added. “President Trump will never back down from defending the American worker. He believes this country must be self-reliant in food, medicine, and critical manufacturing.”
The tariffs are part of a broader White House push to reduce the U.S. trade deficit—a long-standing issue Trump has repeatedly targeted. His administration has pursued “reciprocal” trade policies, often pegging tariffs to the size of trade imbalances with specific countries.
However, not all economists agree with this approach. Many argue that trade deficits are a natural part of global commerce and not inherently negative.
Ryan Young, senior economist at the Competitive Enterprise Institute, told FOX Business that trade deficits are often misunderstood.
“Trade deficits don’t measure economic well-being,” Young said. “The U.S. has run trade deficits for more than 50 years, yet our standard of living has consistently improved—whether it’s access to technology, healthcare, or home comforts.”
JPMorgan Chase CEO Jamie Dimon echoed similar sentiments in his annual letter to shareholders, noting that trade deficits are neither good nor bad on their own.
“Even with no overall deficit, we would still have trade surpluses with some countries and deficits with others. It’s how global commerce functions,” Dimon wrote.
Still, the Trump administration appears undeterred in its hardline stance. As Leavitt made clear, “America must control its own destiny—and that begins with fair trade.”
