Trump tariffs on China now stands at 145% after latest hike, White House confirms

The White House has confirmed that total tariffs imposed on Chinese goods under Donald Trump’s trade policy now stand at 145%, from the 125% rate it imposed a day before. The move is part of a sweeping escalation in trade tensions and has sparked sharp reactions across global financial markets, CNBC reported on Thursday.

The current tariffs in place include:

• A 145% duty on all products imported from China
• 25% tariffs on aluminum, automobiles, and goods from Canada and Mexico that do not fall under the United States-Mexico-Canada Agreement
• A 10% levy on all other imported items.

The White House has not yet detailed the full list of goods affected by the increased tariffs, but sources suggest it covers a broad range of imports, including electronics, machinery, and consumer goods. Analysts warn the sweeping increase could have ripple effects on inflation, supply chains, and global trade.

Earlier in the day, Beijing issued a warning that the tariff conflict initiated by Donald Trump is likely to have negative consequences for Washington. The US president increased duties on Chinese imports to 125% on Wednesday, prompting Beijing to implement retaliatory tariffs of 84% on Thursday, further escalating tensions. While China’s foreign ministry maintained a steadfast position, stating it is not intimidated by US pressure, the commerce ministry adopted a more conciliatory approach, expressing willingness to engage in dialogue rooted in mutual respect and cooperation.

Major US stock indexes have taken a significant hit following the announcement. The market movements on Thursday are retracting a significant portion of the gains made on Wednesday. The S&P 500 experienced a remarkable surge of over 9%, marking its third-largest single-day gain since World War II.

Similarly, the Dow recorded its most substantial percentage increase since March 2020, while the Nasdaq achieved its most significant one-day gain since January 2001 and its second-best performance to date.

Several high-profile companies have also seen steep declines. Warner Bros Discovery has plunged 14%, while Amazon and Apple have each fallen almost 7%. The tariff spike and broader economic uncertainty appear to be rattling investors, especially in the tech and entertainment sectors.

Apple’s stock took a hit of approximately 6.5% during midday trading on Thursday amidst a broader market downturn, adding to the company’s recent string of significant declines. The previous session saw a decrease of around 5%, reversing earlier gains that had propelled the stock up by more than 15% at one point – marking its strongest performance since 1998 following the announcement of a 90-day tarriff halt by the Trump administration on certain U.S. trading partners. In the past month, Apple shares have plummeted by over 18% and are currently down almost 26% for the year.

Nvidia’s stock experienced an 8% decline amidst a broader market downturn resulting from an intensifying trade conflict with China. This decrease followed President Donald Trump’s decision to raise tariffs on Beijing to 145%, up from 125%. Nvidia holds the position of the third-largest stock by market capitalization in the S&P 500 index, trailing only Apple and Microsoft.

As markets search for stability, gold has risen by 3%, reflecting its traditional role as a safe haven during times of volatility. In contrast, riskier assets such as cryptocurrencies have tumbled—Bitcoin is down 5%, and Ethereum has dropped 10%.

The dollar index, which assesses the performance of the US dollar against a variety of currencies, experienced a 1.8% decline on Thursday. During this time, traders sought refuge in the yen, causing the dollar to dip to 144.34 yen. Additionally, the euro saw a 2% increase compared to the US dollar, reaching a rate of 1.12. Looking at the performance over the week, the dollar index has declined by approximately 2%.

Markets and trade experts alike will be watching closely to see how China responds, and whether the move leads to a new round of retaliatory measures.