U.S. Imposes 104% Tariffs on Chinese Imports Amid Escalating Trade Tensions

• U.S. imposes 104% tariffs on Chinese imports amid escalating trade tensions
• They go into effect at midnight on April 10, Eastern Time
• The U.S. also plans to impose duties of up to 50% on imports from dozens of other countries
• Negotiations with Japan, South Korea, and Italy have already been scheduled, China is not on the priority list
• Prices are expected to rise: 75% of Americans are preparing for higher prices
• Dow Jones, Nasdaq and S&P 500 indexes show negative dynamics
• EU considers mirror duties in response to U.S. actions

U.S. imposes 104% tariffs on Chinese imports amid escalating trade tensions, and the EU considers mirror duties in response to U.S. actions. Politics is moving into the economy more rapidly than ever and increasingly inflaming markets, with indices like the Dow Jones, Nasdaq, and S&P 500 showing negative momentum.

More About US-China Trade War Tightening

Tougher measures in response to the 34% Chinese countermeasures are officially announced, amounting to 104% tariffs on Chinese imports and will take effect at midnight April 10 Eastern Time. At the same time, the White House has indicated that it will not grant exceptions in the short term, thus signaling the unambiguous, consistent, and binding nature of these measures.

This has already created one of the worst Mondays on record for U.S. stock markets, and things aren’t getting any better. Particularly in the last 24 hours:

Dow Jones -1.06% 

Nasdaq -2.28%

S&P 500 -2.06% 

As mentioned before, this added cost will ultimately fall on consumers, and according to a Reuters/Ipsos poll, 75% of Americans expect prices to rise. Micron has already warned customers of the surcharges, and retailers are cutting orders and suspending hiring. Remember the rising unemployment rate as a stimulus for lower interest rates and suspiciously comfortable terms for new loans?

And while Asian stock markets are showing a recovery today, this turbulence is clearly developing more and more:

Hang Seng Index 1.51%

CSI300 1.71%

Nikkei 225 6.03% 

Kospi 0.26% 

Also, talking about the longer term, which includes trade relations within industries and agreements between companies and supply chains – Citi lowered China’s GDP growth forecast for 2025 from 4.7% to 4.2%.

It is impossible not to mention that the fight is not only unfolding between the U.S. and China but also the EU is also considering retaliatory tariffs. At the same time, the White House says it is ready for individual negotiations with almost 70 countries. However, China is excluded from the priority list.

Conclusion

We could say that tensions are rising, and no one is going to give in. And we could say that the stakes are rising, because for many people it doesn’t look like protecting the interests of their own country, especially for America and average Americans.

Of course, since the global economy and politics are intertwined, we can expect more than just subdued economic performance in both American and Asian markets. All of this inevitably leads to a worsening of relations between countries, and the further this goes the more difficult it will be to reach an agreement. Be aware, and always assess the situation comprehensively, diversify risks, and adapt your strategy to daily changes.