US Announces Increase in Tariffs on Chinese Imports to 104%
In response to ongoing trade tensions, the White House confirms a significant hike in tariffs amidst global market volatility.
The White House confirmed on Tuesday that tariffs on Chinese imports will increase to 104% starting Wednesday, marking a significant escalation in trade tensions between the United States and China.
President Donald Trump had previously indicated that the initial rate would be 54% and warned of a further increase of 50 percentage points if China retaliated.
In response, China has announced a 34% tariff on U.S. goods beginning Thursday.
Sergio Ermotti, CEO of UBS, criticized the new tariffs as contributing to a situation that he described as 'uncontrollable.' During a gathering in Zurich, he expressed skepticism about a quick resolution to the ongoing trade conflict, suggesting that the probability of a short-term solution had decreased to between 20% and 30%.
He noted a significant level of uncertainty among clients regarding future trade conditions.
In parallel, President Trump signed measures aimed at increasing coal production in the U.S., claiming that coal output must 'more than double' to meet rising demands, particularly due to developments in artificial intelligence.
These regulations are intended to lift existing restrictions on coal extraction and delay the closure of several coal power plants.
Additionally, Trump asserted plans to negotiate 'tailored agreements' with U.S. trading partners, emphasizing ongoing discussions with countries like Japan and South Korea.
The president stated that he had a 'very good conversation' with the South Korean Prime Minister Han Duck-soo regarding trade and the U.S. trade deficit.
The U.S. stock market responded negatively to the news of increased tariffs, with the Dow Jones dropping by 0.84%, the Nasdaq by 2.15%, and the S&P 500 by 1.57%, reflecting investor anxiety over trade developments.
As a retaliatory measure, Canada announced a 25% tariff on certain American vehicle imports to take effect Wednesday, a decision that follows the announcement of U.S. tariffs on all imported vehicles.
Prime Minister Mark Carney had indicated the potential for retaliation in response to U.S. actions.
Meanwhile, approximately 70 countries have reportedly contacted the U.S. administration to discuss the new tariffs and explore potential negotiations.
The White House conveyed openness to negotiating deals with any countries willing to accommodate U.S. trade terms.
In a related development, Indonesian officials announced plans to reduce tariffs on a range of imports, including American steel, and to increase purchases of U.S. products to address trade disparities.
This approach comes in light of a sharp decline in Indonesia's stock market, which experienced its largest drop since 2011.
European stock markets showed signs of recovery, with major indices such as Paris gaining 2.50%, London 2.71%, and Frankfurt 2.48% after a period of significant losses.
In contrast, the yuan offshore fell to a record low against the dollar, underlining the broader economic impacts of the intensified trade conflict.
In the context of these developments, French President Emmanuel Macron expressed hope that Trump would reconsider the tariff increases, emphasizing the importance of maintaining stable trade relations with Europe.
Concerns regarding the effects of tariffs extend globally, prompting remarks from the Secretary-General of the United Nations, who highlighted the potential adverse effects of trade wars on vulnerable economies.
President Donald Trump had previously indicated that the initial rate would be 54% and warned of a further increase of 50 percentage points if China retaliated.
In response, China has announced a 34% tariff on U.S. goods beginning Thursday.
Sergio Ermotti, CEO of UBS, criticized the new tariffs as contributing to a situation that he described as 'uncontrollable.' During a gathering in Zurich, he expressed skepticism about a quick resolution to the ongoing trade conflict, suggesting that the probability of a short-term solution had decreased to between 20% and 30%.
He noted a significant level of uncertainty among clients regarding future trade conditions.
In parallel, President Trump signed measures aimed at increasing coal production in the U.S., claiming that coal output must 'more than double' to meet rising demands, particularly due to developments in artificial intelligence.
These regulations are intended to lift existing restrictions on coal extraction and delay the closure of several coal power plants.
Additionally, Trump asserted plans to negotiate 'tailored agreements' with U.S. trading partners, emphasizing ongoing discussions with countries like Japan and South Korea.
The president stated that he had a 'very good conversation' with the South Korean Prime Minister Han Duck-soo regarding trade and the U.S. trade deficit.
The U.S. stock market responded negatively to the news of increased tariffs, with the Dow Jones dropping by 0.84%, the Nasdaq by 2.15%, and the S&P 500 by 1.57%, reflecting investor anxiety over trade developments.
As a retaliatory measure, Canada announced a 25% tariff on certain American vehicle imports to take effect Wednesday, a decision that follows the announcement of U.S. tariffs on all imported vehicles.
Prime Minister Mark Carney had indicated the potential for retaliation in response to U.S. actions.
Meanwhile, approximately 70 countries have reportedly contacted the U.S. administration to discuss the new tariffs and explore potential negotiations.
The White House conveyed openness to negotiating deals with any countries willing to accommodate U.S. trade terms.
In a related development, Indonesian officials announced plans to reduce tariffs on a range of imports, including American steel, and to increase purchases of U.S. products to address trade disparities.
This approach comes in light of a sharp decline in Indonesia's stock market, which experienced its largest drop since 2011.
European stock markets showed signs of recovery, with major indices such as Paris gaining 2.50%, London 2.71%, and Frankfurt 2.48% after a period of significant losses.
In contrast, the yuan offshore fell to a record low against the dollar, underlining the broader economic impacts of the intensified trade conflict.
In the context of these developments, French President Emmanuel Macron expressed hope that Trump would reconsider the tariff increases, emphasizing the importance of maintaining stable trade relations with Europe.
Concerns regarding the effects of tariffs extend globally, prompting remarks from the Secretary-General of the United Nations, who highlighted the potential adverse effects of trade wars on vulnerable economies.
