Trump’s reciprocal tariffs take effect today, China faces 104% levy

US President Donald Trump’s broad reciprocal tariffs comes to force at midnight Eastern Time on Tuesday (4:00 am GMT), despite ongoing negotiations with affected trading partners. The highest tariff, 104%, will be imposed on goods from China.

Trump will impose an additional 84% tariff on all imports from China, White House Press Secretary Karoline Leavitt announced today.

Chinese tariffs were already scheduled to increase by 34% on Wednesday as part of Trump’s “reciprocal” tariffs package. However, the President added a further 50% after Beijing failed to withdraw its pledge to impose 34% retaliatory tariffs on US imports by midday Tuesday—bringing the total additional levies to 84%.

Meanwhile, retaliatory tariffs are expected to come into effect in over 60 other nations. According to Leavitt, the President has instructed his trade team to pursue “tailor-made” agreements with leaders who are open to negotiation.

Earlier on Tuesday, China’s Ministry of Commerce stated that it “firmly opposes” the additional 50% tariffs on Chinese goods, describing them as “a mistake upon a mistake.” The Chinese government also threatened to intensify its punitive measures against US exports.

Following Leavitt’s remarks, US equities—which had been up earlier in the day—fell sharply by the close of trading.

The Dow Jones Industrial Average dropped 320 points, or 0.84%. The broader S&P 500 index fell by 1.57%, while the tech-heavy Nasdaq Composite declined by 2.15%.

“Countries like China, who have chosen to retaliate and double down on their mistreatment of American workers, are making a mistake,” Leavitt told reporters on Tuesday. “President Trump has a spine of steel, and he will not break.”

According to the White House, tariffs of at least 10% have already been applied to nearly every nation worldwide, with further duties on specific countries set to take effect at 12:01 a.m. on Wednesday.

Treasury Secretary Scott Bessent, Trump’s top economic adviser, stated that 70 countries have reached out to negotiate trade agreements. Trump also posted on social media Tuesday that he was in talks to reduce tariffs with South Korea and other nations.

Talk of these potential agreements has fuelled speculation that the sweeping tariffs may serve as a bargaining tactic rather than a permanent departure from the post-World War II era of free trade.

Hopes for a trade deal prompted a surge in the stock market, partially offsetting some of the earlier losses.