US to implement extra 50% tariffs on China as deadline passes

Washington/Beijing — The US said 104% duties on imports from China will take effect shortly after midnight on Tuesday even as the administration moved to quickly start talks with other trading partners targeted by President Donald Trump’s sweeping tariffs.

US stocks retreated on the news. Global markets had previously posted gains on hopes that Trump might be willing to negotiate down the array of country and product-specific trade barriers he is erecting around the world’s largest consumer market.

The administration has scheduled talks with South Korea and Japan, two close allies and major trading partners, and Italian Prime Minister Giorgia Meloni is due to visit next week.

But the White House made clear that country-specific tariffs of as much as 50% would nevertheless take effect at 12.01am (6am SA time) as planned.

Those tariffs will be especially steep for China. The Trump administration will add an extra 50% on tariffs against China plus an initial 20% that was supplemented by 34% “reciprocal” levies  set for Wednesday. Beijing had responded with a 34% tariff. 

China has refused to bow to what it called “blackmail” and has vowed to “fight to the end.”

US administration officials said they would not prioritise negotiations with the world’s second-biggest economy.

Trump’s swathe of tariffs have raised fears of recession and upended a global trading order that has been in place for decades.

“Right now, we’ve received the instruction to prioritise our allies and our trading partners like Japan and Korea and others,” White House economic adviser Kevin Hassett said on Fox News.

The White House said Trump instructed his trade team to create “tailor made” deals for the almost 70 countries that have reached out for talks. Trump’s lead trade negotiator, Jamieson Greer, told Congress that his office is trying to work quickly but is not facing a particular deadline.

“The president has been clear, again, that he’s not doing exemptions or exceptions in the near term,” Greer told legislators.

China is bracing for a war of attrition, and manufacturers are warning about profits and scrambling to plan new overseas plants. Citing rising external risks, Citi cut its 2025 China GDP growth forecast to 4.2% from 4.7%.

Three of four Americans expect prices to rise as Trump’s tariffs kick in, according to a Reuters/Ipsos poll.

Chipmaker Micron told customers it will impose a tariff-related surcharge starting on Wednesday, while US clothing retailers said they are delaying orders and holding off on hiring.

Running shoes made in Vietnam that retail for $155 will cost $220 when Trump’s 46% tariff on that country takes effect, according to an industry group.

Consumers are stocking up while they can. “I’m buying double of whatever — beans, canned goods, flour, you name it,” said Thomas Jennings, 53, as he pushed a shopping cart through the aisles of a Walmart in New Jersey.

Stock markets found a firmer footing on Tuesday after a gut-wrenching few days for investors, which prompted some business leaders, including those close to Trump, to urge the president to reverse course.

European shares rebounded off 14-month lows after four straight sessions of heavy selling, while global oil prices steadied after falling to four-year lows.

Wall Street’s main indices had posted gains earlier in the day, but fell after the White House said the tariffs on China would take effect.

Europe on the counter

The European Commission is mulling counter-tariffs of 25% on a range of US goods including soybeans, nuts and sausages, though other potential items such as bourbon whiskey were left off the list. Officials said they were ready to negotiate.

The 27-member bloc is struggling with tariffs on vehicles and metals already in place, and faces a 20% tariff on other products on Wednesday. Trump has also threatened to impose tariffs on EU alcoholic drinks.

European pharmaceutical companies, also fearful of the tariff fallout, warned commission president Ursula von der Leyen in a meeting that Trump’s tariffs would expedite the industry’s shift away from Europe and towards the US.

Reuters