Country-specific U.S. tariffs take effect, including 104% duty on China

Sweeping new tariffs on foreign goods officially took effect at 12:01 a.m. ET on Wednesday, marking a significant escalation in President Donald Trump’s efforts to reshape global trade policy and boost domestic manufacturing.

The new country-specific tariff rates officially took effect adding to the baseline 10% import tax that has been in force since Saturday. These elevated duties target nations based on their trade barriers against U.S. goods, with China now facing a total increased tariff rate of 104%.

Other countries hit with sharply higher rates include Vietnam at 46%, Taiwan at 32%, and the European Union at 20%, while Lesotho faces the second highest rate after China at 50%. According to the policy outline, the new tariffs affect nearly every country on Earth.

U.S. officials in the Trump administration said more than 50 countries have already reached out to the president to begin negotiations, hoping to secure exemptions or reduced rates under the new tariff regime.

Trump first announced the plan on April 2 in a nationally televised address from the White House, calling it a “declaration of economic independence.” The policy aims to implement reciprocal tariffs on nations that maintain tariffs or non-monetary trade barriers against U.S. exports.

“April 2, 2025, will forever be remembered as the day American industry was reborn,” Trump declared at the time.

According to the administration, the tariffs are not fully reciprocal but “kind reciprocals,” roughly half the rate that other countries impose on U.S. products. While some countries like Canada and Mexico will retain certain trade privileges under the USMCA, any non-compliant goods from those nations will now be subject to the new tariff structure.

China responded to the latest escalation with sharp criticism. In a statement issued Tuesday, China’s Ministry of Commerce condemned the U.S. move as a “typical unilateral bullying practice,” warning of strong countermeasures and accusing Washington of exacerbating economic tensions.

“If the United States implements the tariff escalation measures, China will resolutely take countermeasures to safeguard its own rights and interests,” the ministry said. “There are no winners in a trade war and no way out for protectionism.”

The trade war’s impact has already reverberated through financial markets. U.S. stocks have suffered their sharpest declines since the COVID pandemic. On Tuesday, the S&P 500 fell below the 5,000-point mark for the first time since April 2024, closing at 4,982.77, down 1.57%. The Nasdaq plummeted 2.15% to 15,267.91, while the Dow Jones Industrial Average dropped 0.84% to 37,645.59.

Economists and business leaders are warning that the new tariffs — especially the steep increase on Chinese imports — could strain global supply chains, drive up consumer prices, and trigger retaliatory measures from key trading partners. Many fear a prolonged trade war could hamper economic growth and shake investor confidence.

Despite the turmoil, Trump has remained defiant, framing the measures as necessary to counter decades of what he calls exploitative trade practices.

“This isn’t about punishment — it’s about fairness,” Trump said last week. “We don’t want to hurt anyone. We want to level the playing field.”

The administration’s trade overhaul is among the most sweeping in modern U.S. history and reflects a broader shift toward protectionist economic policy. Trump has characterized the approach as a reset of America’s global position — one that prioritizes domestic industry over multilateral trade diplomacy.