Duties – 104% shock will impose Donald Trump at midnight at the expense of many Chinese products, according to his official, according to his official. White House.
This package includes previous duties implemented due to the fentanyl crisis, its mutual duties, as well as an additional retaliation announced by Trump after Beijing said it would tax US exports to China.
Donald Trump had warned that the duties he announced on April 2 would not have to lead to retaliation from US trade partners would otherwise return to new duties.
Thus, China’s response to the announcements of the day of liberalization for sweeping mutual duties, with 34%US contributions, brought about a new reaction from the White House leading the ongoing trade war to new levels.
The new duties mean that the cost of Chinese imports is to double in less than 12 hours, throwing the climate on the Wall Street in a matter of minutes. Even if there is a prospect of agreements with major trade partners such as Japan and South Korea, China remains a very big deal for the US economy. Last year, bilateral trade reached $ 582 billion. Japan was at $ 228 billion, while South Korea at 19 billion dollars.
China was the number 2 source of imports for the US last year, after Mexico, to about $ 439 billion.
The impact of such a movement are truly incalculable, not only for national economies but also for businesses separately. In addition to the dip in the markets, analysts estimate that if, for example, Apple transferred the production of iPhones to the US, it would significantly increase the price – over $ 3,000 per phone – and that even 10% of Apple’s supply chain in the US would take at least three years and cost 30 billion.
Markets in front of the “orgy” of duty by the White House react. The Japanese Gen and the Swiss franc, which are traditional shelters for currency traders, are more than 1% up compared to the dollar – the yen at 146.25 per dollar and the francs at the level of 0.8500. The Bloomberg index for the dollar, meanwhile, fell 0.2% and is still pressured alongside public bond yields.
Pressure exercise for negotiations?
US Trade Representative Jameson Green said in a hearing in Congress on Tuesday (08.04.2025) that Trump’s duties “will come into force” and “we combine it with immediate negotiations with our partners”.
“If you have a better idea to achieve reciprocity and reduce our commercial deficit, we want to talk to you. We want to negotiate with you. And this is true for both sides, “Green said.
The US president said he spoke with the South Korean leader “about the huge and unsustainable surplus, the duties, the shipbuilding industry” and the “large -scale market” American liquid gas. He also discussed “their consortium in a pipeline in Alaska and the payment for the great military protection we provide in South Korea”.
Finance Minister Scott Bessed said earlier that “Japan will be prioritized” in a long series of states seeking to persuade Trump to suspend his so -called mutual duties, praising Tokyo who declined to retaliate. Trump and Japanese Prime Minister Sigerou Isiba made a telephone conversation on Monday to arrange talks, with the Japanese leader urging the president to re -examine his approach. White House National Economic Council Director Kevin Hasset said Trump had given clear instructions to his team on the sequence of talks with friendly nations before others seeking an agreement. “The president will decide when and whether he will speak with China, but at the moment we have received the directive to prioritize our allies and our commercial partners, such as Japan and Korea,” Hasset said in an interview with Fox News.
Reactions have begun to come from Europe. Spanish Prime Minister Pedro Sanchez has called on the European Union to re -examine its relationship with China amidst the global turmoil caused by the US movement, according to Bloomberg.
“What US President Donald Trump does in world trade must push Europe to review its willingness to find other new partners and open new markets,” Sanchez said in a conversation with reporters on arrival at Vietnam. “The situation with the US means that everyone has to adapt, and this includes Europe that changes its position towards China and China against Europe,” he added.