White House confirms 104% tariffs on China, US share market nosedives

Trump administration says other reciprocal tariffs will go ahead, wants ‘tailor-made’ deals with every country seeking negotiations

8:46 AM MYT

 

KUALA LUMPUR — The US will proceed with a 104% tariff on China beginning Wednesday, the White House announced.

“There will be 104% tariffs going into effect on China tonight at midnight,” said spokeswoman Karoline Leavitt at a press briefing on Tuesday, Bernama reported citing Anadolu Ajansi.

Leavitt said President Donald Trump believes China “has to make a deal” with the US, and called Beijing’s retaliation “a mistake.”

She said nearly 70 countries have already contacted Trump’s administration to begin negotiations following his announcement last week.

The 104% tariff on China comes after Beijing retaliated against Trump’s earlier reciprocal tariff of 34%, leading to a fresh threat of of an additional 50% tariff on top of the earlier announcement. Also included is an earlier 20% tariff on China for its supposed role in the fentanyl supply chain.

Trump has also said he will not hold any talks with China in response to its request for meetings

Earlier Tuesday, he met his trade team and directed them to negotiate “tailor-made” trade deals with every country that approaches the administration.

When asked whether the president might delay the new tariffs, Leavitt said Trump has made it clear he is not considering an extension or a pause.

“As the president said, the reciprocal tariffs, which will continue to go into effect as these deals are negotiated and ongoing, will generate trillions of dollars in revenue for the US,” she added.

US stocks closed lower Tuesday following the White House’s announcement, escalating trade tensions as both superpower countries refuse to budge. 

Apple shares, which had gained more than 4% earlier in the day, ended nearly 5% lower.

The iPhone maker has now lost over 22% in the past four trading days, amid growing concerns over tariffs as most iPhones are manufactured in China.

The Dow Jones Industrial Average fell 0.84%, or 320.01 points, to close at 37,645.59.

The S&P 500 dropped 1.57%, or 79.48 points, to 4,982.77, while the Nasdaq Composite shed 2.15 per cent, or 335.35 points, to end at 15,267.91.

The CBOE Volatility Index (VIX), often referred to as the “fear index,” surged 11.39% to 52.33.

Trump’s reciprocal tariffs on major US trading partners goes into effect on April 9, while the 10% baseline tariff on all imports to the US began on April 5. – April 9, 2025

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