TLDR

• Trump’s sweeping tariffs took effect on April 9, 2025, including 104% levy on Chinese imports
• China retaliated with 84% tariffs on US goods, vowing to “fight to the end”
• Pharmaceutical tariffs coming “very shortly” according to Trump
• Nearly 70 countries have reached out to the White House to negotiate
• Markets reacted negatively with S&P 500 approaching bear market territory

President Donald Trump’s sweeping tariffs on countries around the world, including a 104% levy on Chinese imports, took effect early Wednesday, dramatically altering the global trade landscape.

The tariffs impact more than 100 countries, with China facing the highest rate at 104%. This includes a 50% tariff on Chinese goods plus the 34% reciprocal tariffs applied more broadly.

In response, China announced it would raise its tariff on US goods to 84%. Beijing’s move marks further deterioration in US-China trade relations after the country vowed on Tuesday to “fight to the end” in the renewed trade war.

Market Reaction and Economic Impact

Wall Street reacted negatively to the tariff implementation. The S&P 500 approached bear market territory on Wednesday as Tuesday’s optimism faded.

Delta Air Lines scrapped its full-year guidance citing trade uncertainty. This highlights how companies are beginning to feel the effects of the escalating trade tensions.

Walmart reaffirmed its sales outlook but warned about the impact of tariffs. This suggests that major retailers are concerned about how these trade measures will affect their operations and potentially consumer prices.

The expanded tariffs come on top of the blanket 10% tariff on all goods coming into the US, which took effect April 5. This creates a layered approach to trade barriers that varies by country.

International Response and Negotiations

Countries are still working to negotiate with the US. According to White House press secretary Karoline Leavitt, nearly 70 nations have reached out to Trump to negotiate over tariffs.

Talks have reportedly begun with Japan and South Korea. However, deals are expected to take time if they happen at all.

Treasury Secretary Scott Bessent suggested trade talks could last into June. He predicted a busy few months of negotiations ahead in an interview with Fox News.

Some countries have already announced countermeasures. Canada has announced new duties on certain vehicles imported from the US.

The European Union is preparing an initial set of countermeasures. The tariff rate applied to the 27-nation bloc of EU countries under Trump’s policy is 20%, with about 70% of the EU’s exports to the US covered.

Future Tariff Plans

Trump also said he will announce tariffs on pharmaceutical products “very shortly.” He made these comments at the National Republican Congressional Committee dinner Tuesday.

Despite the pushback from members of his own party and Wall Street, Trump has remained defiant. At the Republican dinner, he stated, “We don’t necessarily want to make a deal with them. We’re happy the way we are, taking our $2 billion a day.”

China has called for dialogue and cooperation with the US on tariffs. However, Beijing also sent clear signals it will hold the line on its own tariff measures.

Experts suggest China is unlikely to weaponize its Treasury holdings as the trade war heats up. This indicates that while the trade conflict is escalating, certain financial weapons may remain unused.

Leavitt emphasized that no delays or extensions to the tariff implementation were expected. She declared that the “era of American economic surrender is over.”

Companies have begun adjusting to the new reality—largely by raising prices. This suggests that consumers may soon feel the impact of these tariffs through higher costs for goods.

The full economic impact remains to be seen as countries and companies adapt to this new trade environment. Analysts continue to monitor the situation closely as negotiations proceed.