President Donald Trump’s new 10% baseline tariff on imported goods officially took effect Wednesday morning, with China facing a massive 104% tariff on imports. The White House confirmed the measure will apply across the board to goods coming from China after Beijing failed to meet a deadline and retaliated against earlier U.S. tariffs.
White House Press Secretary Karoline Leavitt told reporters on Tuesday that the president is standing firm against what he calls “economic bullying” by China. “When America is punched, he punches back harder,” she said.
The new tariffs come after China responded to last week’s 34% U.S. levy with its own counter-tariffs, prompting Trump to escalate the pressure even further.
The 104% tariff on China is the highest among a wide range of new import duties targeting what Trump has described as “the worst offenders” in global trade.
Alongside China, countries like Vietnam and Cambodia are also being hit with tariffs of 46% and 49%, respectively.
The European Union faces a 20% tariff on certain products, while a baseline 10% duty on general imports has already gone into effect.
Despite the tough stance, the White House is moving quickly to begin trade talks with allies such as Japan, South Korea, and Italy. However, officials made it clear that no exemptions will be granted in the near term and that negotiations will not be prioritized for China.
“Right now, we’ve received the instruction to prioritize our allies and our trading partners like Japan and Korea,” said White House economic adviser Kevin Hassett. Trump’s lead trade negotiator, Jamieson Greer, also told Congress the administration is working to strike “tailor-made” deals with nearly 70 countries seeking discussions.
Markets initially rallied earlier in the day on hopes that the administration might soften its stance. But Wall Street turned negative after the White House confirmed the tariffs on China would take effect at 12:01 a.m. Eastern Time.
Businesses across the U.S. are bracing for impact. Micron, a major chipmaker, said it would begin adding a surcharge to cover the new costs. Clothing retailers are delaying orders and hiring decisions, while industry groups say consumer prices could rise sharply. A pair of running shoes made in Vietnam that used to retail for $155 could now cost $220 under the new duties.
Still, many Americans support the president’s tough approach. A recent Reuters/Ipsos poll showed that three out of four Americans expect prices to rise, but believe the trade action is necessary. Some shoppers are already stockpiling goods in anticipation.
China’s government has vowed to “fight to the end,” but Trump has made it clear he’s not backing down. With a global trade shake-up now in motion, his administration says it’s ready to defend American industries and workers—no matter how long it takes.