China is hammered with 104% tariffs as defiant Beijing vows it would ‘struggle to the top’ over levies – regardless of being warned to not retaliate
American tariffs on Chinese goods will double to more than 100 per cent today, after the White House warned Beijing was making a ‘mistake’ in resisting Donald Trump‘s trade demands.
A rally in the US stock market was wiped out in minutes after the White House last night confirmed Mr Trump will follow through today on a threat to levy an additional 50 per cent tariff on China, taking the total to 104 per cent.
The move plunges the world’s two biggest economies deeper into a trade war and will intensify fears of a global recession.
It also threatens an inflationary surge in the price of Chinese goods on the American market, hitting everything from socks to iPhones.
Beijing on Tuesday indicated it could retaliate further, saying it would ‘fight to the end’ to preserve its trading rights.
Confirming the new tariffs will come into force today, White House press secretary Karoline Leavitt said: ‘Countries like China who have chosen to retaliate and try to double down on their mistreatment of American workers are making a mistake.
‘President Trump has a spine of steel that he will not break and America will not break under his leadership… It was a mistake for China to retaliate.
‘When America is punched, he punches back harder.’
She said 70 countries were now seeking a deal and ‘falling over themselves to reform their unfair trade practices’.
American tariffs on Chinese goods will double to more than 100 per cent today, after the White House warned Beijing was making a ‘mistake’ in resisting Donald Trump’s trade demands
Rachel Reeves (pictured) held crisis talks on Tuesday with Bank of England governor Andrew Bailey, who insisted that the UK’s banking system is ‘resilient’ enough to cope
A rally in the US stock market was wiped out in minutes after the White House last night confirmed Mr Trump will follow through today on a threat to levy an additional 50 per cent tariff on China, taking the total to 104 per cent. Pictured: Traders work the floor of the New York Stock Exchange
On another turbulent day, President Trump had earlier hinted that a deal with Beijing was also possible, saying: ‘China also wants to make a deal, badly, but they don’t know how to get it started. We are waiting for their call. It will happen!’
He also last night claimed the US is taking in $2billion a day from tariffs.
Rachel Reeves held crisis talks on Tuesday with Bank of England governor Andrew Bailey, who insisted that the UK’s banking system is ‘resilient’ enough to cope.
The Chancellor told MPs that the US President’s tariff blitz had ‘huge implications for the world economy’ – and could have a ‘profound’ impact on the UK.
She said ministers would ‘continue to back British businesses during these uncertain times’.
But she rejected calls for a Government-backed ‘buy British’ campaign, saying it would be wrong to become ‘inward looking’.
Lib Dem deputy leader Daisy Cooper had proposed that the Chancellor stand up to America by launching a patriotic campaign urging the public to support British firms.
It also threatens an inflationary surge in the price of Chinese goods on the American market, hitting everything from socks to iPhones (stock image)
The Chancellor told MPs that the US President’s tariff blitz had ‘huge implications for the world economy’ – and could have a ‘profound’ impact on the UK (stock image of iPhones)
She said people ‘want to show that Britain is not going to take Trump’s tariffs lying down’.
The Chancellor replied that ‘ratcheting up barriers to trade, ratcheting up tariffs will not be in our country’s interests, whether that’s in inflation or indeed for supply chains’.
She added: ‘In terms of buying British, I think everyone will make their own decisions.
‘What we don’t want to see is a trade war, with Britain becoming inward-looking, because if every country in the world decided that they only wanted to buy things produced in their country, that is not a good way forward.’
Prime Minister Sir Keir Starmer dropped heavy hints that the Government could part-nationalise tariff-hit British Steel to prevent the closure of its Scunthorpe plant – the last in the UK capable of producing virgin steel.
China has been the key target for Mr Trump’s tariff policy, with the US President arguing that the huge trade imbalance between the two countries is the result of unfair practices by the communist regime.
Mr Trump imposed an initial 20 per cent tariff on China, followed by an additional 34 per cent on ‘Liberation Day’ last week. When China responded in kind, he announced the further 50 per cent levy.
European Commission chief Ursula von der Leyen on Tuesday urged Chinese Premier Li Qiang not to continue with tit-for-tat retaliation that could deepen the crisis.
Sources said Ms von der Leyen ‘stressed the responsibility of Europe and China, as two of the world’s largest markets, to support a strong reformed trading system, free, fair and founded on a level playing field’.
But Beijing indicated it would not back down. China’s commerce ministry said the US justification for the tariffs was ‘completely groundless and is a typical unilateral bullying practice’.
It said its retaliation was ‘aimed at safeguarding its sovereignty, security and development interests, and maintaining the normal international trade order’.
In a statement, the commerce ministry added: ‘The US threat to escalate tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the US. China will never accept this.
‘If the US insists on its own way, China will fight to the end.’
Dan Wang, from the Eurasia Group consultancy, said: ‘I believe China means it when it says it will fight to the end. It will be tit-for-tat if the US raises the tariffs again, China will match it.’
