The U.S. has imposed 104% tariffs on China's imports.
White House Press Secretary Karoline Leavitt confirmed an additional 50% levy would be applied to China in a press conference on Tuesday (local time).
The increase, applied in an executive order, is on top of an existing 20% tariff from earlier this year, and a 34% levy already set to come into effect today.
A Chinese Government spokesperson has called the move “economic bullying”.
Tariffs
Tariffs are an import tax applied to foreign-made goods brought into another country. They are paid by the importer.
Since coming to power in January, Trump has imposed a range of tariffs on imports to the U.S.
The goal of tariffs is to encourage a country’s companies and citizens to buy locally-produced goods, boosting industrial activity. Tariffs can also be influenced by geopolitical tensions and trade partnerships between countries.
Liberation Day
On Wednesday (local time) last week, Trump announced new tariffs on all products imported to the U.S.
Displaying a chart of tariffs imposed against the U.S. by other countries, Trump claimed he was charging “approximately half” of that amount in return.
The chart showed the U.S. would impose a 34% tariff on China, who Trump claimed charges a 67% tariff on American products.
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New tariffs
Following Trump’s announcement, China announced 34% retaliatory tariffs on U.S. imports last week.
In a post on his social media network Truth Social earlier this week, Trump said he would apply an additional 50% tariff if China did not back down from its retaliatory tariffs.
Following the post, Lin Jian, a spokesperson for China’s Foreign Ministry, said: “Intimidation, threat and blackmail are not the right way to engage with China.”
“If the U.S... is determined to fight a tariff and trade war, China’s response will continue to the end,” Lin said.
Leavitt then confirmed Trump’s plan would come into effect at 12.01am D.C. time on Wednesday.
“It was a mistake for China to retaliate... when America is punched, [Trump] punches back harder,” Leavitt said.
Impact
Products imported by China to the U.S. include soybeans, gas, and phones.
For example, while Apple designs its products in the U.S, they are primarily produced by workers in Chinese factories.
In the U.S, the baseline model of the iPhone 16 costs $799 ($AU1,330). Assuming Apple passed on the tariffs to consumers in full, the phone would cost $1,630 ($AU2,720).
During Trump’s first term, Apple secured an exemption from tariffs on China for iPhones.
