US tariffs on Chinese goods totalling 104 per cent will start being collected from 5am UK time on Wednesday, the White House has said.
It comes after China accused Donald Trump of blackmail and vowed to “fight to the end” in a trade war.
Asked at a press conference on Wednesday whether Trump’s threatened tariff would be imposed on Wednesday, White House spokesperson Karoline Leavitt said: “It will be going into effect at 12.01am tonight. So effectively tomorrow."
Pressed on whether Trump would consider doing a deal with Chinese president Xi Jinping, she said: “China has to make a deal with the US.
"It was a mistake for China to retaliate. When America is punched he punches back harder."
In a statement issued on Tuesday, Beijing vowed to “resolutely take countermeasures to safeguard its own rights and interests”.
As the world was on the brink of a full-blown trade war, Health Secretary Wes Streeting admitted Britain would be hit by the economic mayhem.
"Until this trade war erupted, we'd already had issues with medicines production and supply internationally,” he told Sky News.
“We are certainly going to get caught up if there is trade war,” he added on LBC Radio, later stressing that the Government disagreed with Trump’s tariffs.
After days of falls on global stock markets, London's FTSE 100 rose in the first few minutes of trading.
The index, which tracks the UK's top 100 listed companies, was up more than 1% shortly after markets opened on Tuesday.
But the last few days have been rollercoaster rides for shares which could be hit again by another Trump outburst.
In Beijing, the Commerce Ministry statement said America’s imposition of “so-called ‘reciprocal tariffs”’ on China is “completely groundless and is a typical unilateral bullying practice”.
The ministry hinted more retaliatory tariffs may be coming.
“The countermeasures China has taken are aimed at safeguarding its sovereignty, security and development interests, and maintaining the normal international trade order. They are completely legitimate,” the ministry said.
“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.”
US Treasury Secretary Scott Bessent blasted Beijing’s stance.
"I think it was a big mistake, this Chinese escalation," he said.
Trump’s earlier threat, which he delivered on social media, came after China said it would retaliate against US tariffs announced last week.
“If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” he wrote on Truth Social.
“Additionally, all talks with China concerning their requested meetings with us will be terminated!”
If Trump implements his plans, US tariffs on imports from China would reach a combined 104%.
The new taxes would be on top of the 20% tariffs announced as punishment for fentanyl trafficking and his separate 34% tariffs announced last week.
Not only could that increase prices for American consumers, it could give China an incentive to flood other countries with cheaper goods and seek deeper partnerships with other trading partners.
"If the tariffs keep going up and up, it becomes a battle of wills and principles rather than economics," said Xu Tianchen, senior economist for China at the Economist Intelligence Unit.
"Since China already faces a tariff rate in excess of 60%, it doesn't matter if it goes up by 50% or 500%," he added.
The European Union has proposed counter-tariffs of its own to Trump's onslaught that has swept up dozens of countries, sent financial markets into a tailspin and fuelled expectations that the global economy may be headed for recession.
