Trump's 104% tariffs on China to take effect at midnight, quashing earlier market gains

Thomson Reuters

· Posted: Apr 08, 2025 3:44 PM EDT | Last Updated: 6 minutes ago

The United States said connected Tuesday that 104 per cent duties connected imports from China will instrumentality effect soon aft midnight, adjacent arsenic the Trump medication moved to rapidly commencement talks with different trading partners targeted by President Donald Trump's sweeping tariff plan.

U.S. stocks retreated connected the news. Global markets had antecedently posted gains connected hopes that Trump mightiness beryllium consenting to negociate down the array of country- and product-specific commercialized barriers he is erecting astir the world's largest user market.

The medication has scheduled talks with South Korea and Japan, 2 adjacent allies and large trading partners, and Italian Prime Minister Giorgia Meloni is owed to sojourn adjacent week.

But the White House made wide that country-specific tariffs of up to 50 per cent would nevertheless instrumentality effect astatine 12:01 a.m. ET, arsenic planned.

Those tariffs will beryllium particularly steep for China, arsenic Trump has ratcheted up duties connected its imports to 104 per cent in effect to counter-tariffs Beijing announced past week. China has refused to bow to what it called "blackmail" and has vowed to "fight to the end."

Administration officials said they would not prioritize negotiations with the world's No. 2 economical power.

WATCH | How China is warring Trump's tariffs: 

'Not doing exemptions ... successful the adjacent term'

Trump's sweeping tariffs have raised fears of recession and upended a planetary trading bid that has been successful spot for decades.

"Right now, we've received the acquisition to prioritize our allies and our trading partners similar Japan and Korea and others," White House economical advisor Kevin Hassett said connected Fox News.

The White House said Trump instructed his commercialized squad to make "tailor made" deals for the astir 70 countries that person reached retired for talks. Trump's pb commercialized negotiator, Jamieson Greer, told Congress that his bureau is trying to enactment quickly but is not facing a peculiar deadline.

"The president has been clear, again, that he's not doing exemptions oregon exceptions successful the adjacent term," Greer told lawmakers.

China is bracing for a war of attrition, and manufacturers are informing astir profits and scrambling to program caller overseas plants. Citing rising outer risks, Citi cut its 2025 China GDP maturation forecast to 4.2 per cent from 4.7 per cent.

Three retired of 4 Americans expect prices to emergence arsenic Trump's tariffs kick in, according to a Reuters/Ipsos poll.

Consumers stocking up

Chipmaker Micron told customers it volition enforce a tariff-related surcharge starting connected Wednesday, portion U.S. covering retailers said they are delaying orders and holding disconnected connected hiring. Running shoes made successful Vietnam that present retail for $155 US volition outgo $220 US erstwhile Trump's 46 per cent tariff connected that state takes effect, according to an manufacture group.

Consumers are stocking up while they can. "I'm buying treble of immoderate — beans, canned goods, flour, you sanction it," Thomas Jennings, 53, said arsenic helium pushed a buying cart done the aisles of a New Jersey Walmart.

Stock markets recovered a firmer footing connected Tuesday aft a gut-wrenching fewer days for investors, which prompted immoderate concern leaders, including those adjacent to Trump, to impulse the president to reverse course.

European shares bounced disconnected 14-month lows aft 4 consecutive sessions of dense selling, portion global oil prices steadied aft falling to four-year lows. Wall Street's main indexes had posted gains earlier successful the day, but fell aft the White House said the tariffs on China would instrumentality effect.

WATCH | Global markets rebound temporarily: