The United States will raise its tariff rate on Chinese imports to 104% at 12:01 a.m. ET on Wednesday, a White House official confirmed to CNBC.
The move comes after President Donald Trump issued an ultimatum on Monday, warning that existing tariffs on Chinese goods would surge by 50% unless Beijing removed its retaliatory duties on American exports by Tuesday. Trump later clarified that China had until "12 o'clock" to comply with the demand.
Beijing, however, refused to back down, maintaining its 34% retaliatory tariffs. In response, Trump vowed that the United States would move ahead with the increased duties. "It was a mistake for China to retaliate," White House press secretary Karoline Leavitt said Tuesday. "When America is punched, [the president] punches back harder. That's why there will be 104% tariffs going into effect on China tonight at midnight."
The tariff hike coincides with China's defiant stance to "fight to the end" amid the renewed trade war. Trump had initially announced the additional 50% levy following Beijing's retaliation to previous U.S. tariffs.
In a social media post on Tuesday, Trump suggested China was still seeking a resolution. "China also wants to make a deal, badly, but they don't know how to get it started," he wrote. "We are waiting for their call."
Meanwhile, the administration is engaged in broader trade negotiations. Talks are reportedly underway with countries such as Japan and South Korea. "We're going to get fair deals and good deals with every country, and if we don't, then we're going to have nothing to do with them," Trump said at the White House on Monday.
The U.S. will also implement a sweeping 10% tariff on all imported goods starting April 9, targeting 185 countries Trump labeled as the "worst offenders" in global trade. The policy includes new tariffs on nations across multiple regions, prompting varied responses.
Canada has imposed duties on specific U.S.-made vehicles, while the European Union is preparing its own set of countermeasures. The EU will face a 20% tariff under the new policy, impacting roughly 70% of its exports to the U.S.
As the measures take effect, businesses are already adjusting by increasing prices in anticipation of higher import costs, signaling a broader economic impact in the weeks ahead.
