U.S. Escalates Trade War: China Tariffs Hit 145%; Market Crashes
President Donald Trump announced a 125% tariff hike on Chinese imports Wednesday, adding to the 20% rate imposed in March as part of efforts to combat fentanyl trafficking.
According to a White House decree published Thursday, total tariffs on Chinese goods now stand at 145%, including those in place before Trump returned to office in January.
The decree also mentions a pause on certain tariffs targeting other countries.
Market Reaction
U.S. markets are giving back much of their historic gains from the previous day (+9.5%) as Wall Street reassesses a trade war that, while less intense, still poses economic risks. Losses deepened after the White House clarified that Chinese imports will face a 145% tariff—higher than the 125% rate initially mentioned by President Trump.
The S&P 500 is down 4.8%, the Dow Jones Industrial Average has dropped 4%, and the Nasdaq Composite is sinking 5.7%.
Art of the Deal
Meanwhile, the U.S. is evaluating tariff deal proposals from 15 countries. White House economic adviser Kevin Hassett said some agreements are close, following Trump’s unexpected move to ease certain tariffs this week.
Hassett noted that trade officials are prioritizing key partners and expect significant progress in the next three to four weeks, pointing to a fast-moving process that began well before recent developments.
Trump’s shift came less than 24 hours after new tariffs took effect on most U.S. trade partners and followed a period of intense market volatility—the worst since the early days of the COVID-19 pandemic.
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