White House Imposes Historic 104% Tariff on Chinese Products: Understand the Global Impact

USA vs. China: Tariff Escalation Reaches New Heights
In what has been described as "the largest bilateral tariff hike in recent history," the United States government confirmed this Tuesday (08) the imposition of a 104% tariff on a range of Chinese products, including electronics, semiconductors, electric vehicles, and steel.

The decision, announced directly by the White House, is a response to retaliatory tariffs recently imposed by Beijing. The new rate will take effect at 12:01 AM on Wednesday, according to the official statement.

💬 U.S. Government Cites “Strategic Protection”
According to the Trump administration, the goal of the measure is to "protect domestic industry" and rebalance a trade relationship seen as "unfair." In 2024, the U.S. imported over $430 billion in Chinese goods, while exporting only $145 billion.

“We will not tolerate unfair trade practices. The 104% tariff sends a clear message: China needs to play by the rules,” said U.S. Treasury Secretary Scott Bessent.

📈 Markets React with Volatility
The announcement triggered significant turbulence in global markets. Wall Street saw immediate losses, with the Nasdaq falling 2.1% and the S&P 500 dropping 1.6%. Asian and European markets also felt the shock.

U.S. companies with strong operations in China, such as Apple and Tesla, saw their stock values drop. Economists are concerned that the tariff war will raise production costs and further fuel global inflation.

🛑 China Vows Counterattack: “We Will Not Bow to Blackmail”
The Chinese government responded forcefully, announcing that it will implement equivalent retaliatory measures. China’s Ministry of Commerce called the U.S. action “aggressive and irresponsible.”

“The U.S. is provoking a long-term trade war. We will respond accordingly,” said a Chinese government spokesperson during a press briefing this morning.

📊 Expected Impacts: What Changes for Consumers and the World
With the tariff increase:

• Chinese imports will become significantly more expensive in the U.S.

• Brazilian and European industries may benefit by filling supply gaps.

• Global companies will need to reassess supply chains and trade agreements.

• Rising tensions may impact climate and international security negotiations.

🧠 What Analysts Are Saying
Economists interviewed by outlets like Bloomberg and The Economist warn that the move may be more political than economic, aiming to regain industrial voter support in a U.S. election year.

However, they also highlight that the risk of a global recession increases—especially if China expands retaliatory measures into areas like food and technology.

🔚 Conclusion
The White House’s decision to raise tariffs to 104% marks a new chapter in the ongoing trade war between the world’s two largest powers. The situation demands close attention from investors, consumers, and governments alike—and remains far from a resolution.