White House: US hikes China tariffs to 104% on Apr. 9

The United States will raise tariffs on Chinese imports to 104% on Apr. 9, according to a statement from the White House. This follows China’s pledge to retaliate against earlier US trade measures.

President Donald Trump had warned of a 50% tariff if China did not withdraw its planned countermeasures.

The new tariffs bring the total duties for this year to 104%.

This announcement signals rising tensions between the two nations. Both sides show no signs of de-escalation in the ongoing trade dispute.

🔗 Source: Agence France-Presse

🧠 Food for thought

1️⃣ Current tariffs represent the most dramatic US protectionist shift in over a century

The escalation to 104% tariffs marks an unprecedented modern trade barrier, pushing the average effective US tariff rate to 22.5%, the highest level since 1909 1.

This represents a reversal of post-WWII trade liberalization, when average US tariffs fell from 20% in 1947 to below 5% by 1994 as global trade agreements expanded 2.

The Yale Budget Lab estimates these tariffs will increase consumer prices by 2.3% overall, with clothing and textiles specifically seeing price increases of 17% 1.

For context, the current tariff measures constitute one of the largest effective tax increases since the 1980s, with the Tax Foundation projecting $2.9 trillion in additional federal revenue over the next decade 3.

Economic projections suggest these tariffs will reduce US GDP by 0.7-0.8%, translating to annual economic losses between $100-180 billion in the long term 1, 4.

2️⃣ Tariff burden falls heaviest on American consumers with regressive impact

Research indicates the economic cost of these tariffs will average $3,800 per household annually, with households in the bottom income distribution losing $1,700 per year 1.

The Tax Foundation projects that after-tax incomes will drop by an average of 1.9%, with lower-income households facing a disproportionately higher burden relative to their income 3.

Historical analysis shows tariffs typically have a high pass-through rate close to 100%, meaning consumers rather than exporters bear most of the cost 4.