US President Donald Trump has confirmed that the US will impose a cumulative 104% tariff on Chinese imports at midnight tonight, in retaliation for China’s decision to impose a 34% tariff on US goods.
Trump had initially planned a 34% tariff on Chinese goods, on top of the ones he implemented earlier this year, but this announcement represents a 50% increase on that figure.
This latest move intensifies the US’s trade war with China, bringing the countries into a showdown with potentially devastating consequences for both economies.
While Trump claims the tariffs will put the US on an equal footing with its trading partners, critics argue that US businesses and consumers will feel the resulting uncertainty and increased costs the most.
The decision is likely to impact US companies with links to China, such as Apple and Tesla, which manufacture or assemble parts there.