The White House is signaling that new tariffs on Chinese imports are taking effect after China’s government missed a deadline to lift its retaliatory tariffs that were imposed in response to President Donald Trump’s tariffs.
White House press secretary Karoline Leavitt said Tuesday that because China declined to lift its retaliatory tariff, the president’s additional 50% tariff levied on top of previously imposed tariffs of 20% and 34% took effect, bringing the total tariff on Chinese goods to 104%.
She added that the tariffs took effect at noon Eastern Time on Tuesday, with tariff collection set to begin on Wednesday. Leavitt said that U.S. trading partners should be coming to the administration with deals to improve trade terms.
“The president’s message has been simple and consistent from the beginning to countries around the world – bring us your best offers and he will listen,” Leavitt said during a White House press briefing Tuesday. “Deals will only be made if they benefit American workers and address our nation’s crippling trade deficits.”
Leavitt said that by contrast, China’s retaliatory tariffs have prompted Trump to increase duties on Chinese imports in response, serving as an example of what other countries that follow suit can expect.
“On the other hand, countries like China, who have chosen to retaliate, and try to double down on their mistreatment of American workers are making a mistake,” she said.
“President Trump has a spine of steel and he will not break, and America will not break under his leadership. He is guided by a firm belief that America must be able to produce essential goods for our own people and export them to the rest of the world,” Leavitt said. “A strong America cannot be solely dependent on foreign countries for our food, medicines, and critical minerals, and America must always maintain a robust defense supply chain.”
The Trump administration has centered its tariff strategy around the elimination of trade deficits. After touting plans for “reciprocal” tariffs, the administration’s formula for those tariffs was calculated based on the size of the U.S. trade deficit with various trading partners. Economists tend to dismiss trade deficits as neither good nor bad, arguing they’re the result of mutually beneficial trade decisions. Ryan Young, senior economist at the Competitive Enterprise Institute, previously told FOX Business that trade balances don’t “say anything about a country’s economic health, good or bad,” and noted the U.S. has run trade deficits for over 50 years.
“The U.S. has run a trade deficit every year since the 1970s, yet living standards are better by almost every measure, whether it’s income, unemployment rate, life expectancy, percentage of low-income households with air-conditioning, internet and other goods,” he said.
“If the trade deficit were harmful, much of what we see all around us every day should not exist,” Young added.
