The U.S. will impose a 104% customs duty on imports from China.

White House spokesperson Karoline Leavitt announced that the 'collections' would take place starting Wednesday, April 9.

White House spokesperson Karoline Leavitt stated on Tuesday that a 104 percent customs duty would be imposed on China for failing to lift its 'retaliatory tariffs' introduced 'for precautionary purposes.' Leavitt noted that products originating from China would be included in the scope and announced that the taxation would begin on Wednesday, April 9. "Americans do not need another country. President Trump (Donald) has a spine of steel and will never back down," she said. Following President Donald Trump's threat to impose an additional 50 percent customs duty on all goods imported from China, Beijing announced it would 'fight to the end.' The trade war between the world's two largest economies escalated as both sides showed little inclination to negotiate. Last Wednesday, Trump had announced new customs duties, including a 34 percent import tax on Chinese goods. In response, China introduced a 34 percent customs duty on U.S. goods two days later. On Monday, Trump warned that he would impose further tariffs if China did not withdraw its retaliatory tariffs. In a post on social media, Trump said, "If China does not remove the 34 percent increase it has added to the long-standing trade violations by tomorrow, until April 8, 2025, the U.S. will impose an additional 50 percent customs tariff on China starting April 9." If this decision comes into effect, China could face a total customs duty of 124 percent, including the existing 20 percent U.S. customs duty, the recently announced 34 percent customs duty, and an additional 50 percent customs duty. In response, China's Ministry of Commerce stated, "The U.S. threat to increase tariffs on China is a mistake upon mistake," adding, "If the U.S. insists on its own way, China will fight to the end." The ministry called on the U.S. to resolve the differences through equal dialogue based on mutual respect. Earlier, Trump told Israeli Prime Minister Benjamin Netanyahu that while he was open to negotiations, he was not considering pausing the planned customs duties. However, he reiterated the threat of imposing a 50 percent additional customs duty on China. Trump also stated at a press conference that he would not accept the EU's proposal for zero customs duties on automobiles and industrial goods. "The European Union has treated us very poorly. They will have to take their energy from us because they need it. They can buy, and we can generate 350 billion dollars in a week." The EU abandoned its plan to impose a 50 percent retaliatory customs duty on American whiskey and instead proposed a 25 percent customs duty on some U.S. goods as a countermeasure to the 25 percent import tax imposed by Trump on steel and aluminum.

Asian markets recovered with bottom fishing. After a week of intense selling, Asian stock markets rebounded from recent market turbulence with purchases from the low levels. Hopes regarding tariff negotiations between the U.S. and its trade partners also fueled the rally. Japan's benchmark index, the Nikkei 225, rose by over 6 percent at the open after falling to an 18-month low on Monday. Following a phone conversation between Japanese Prime Minister Shigeru Ishiba and President Trump on Monday, Japan will meet with U.S. Trade Representative Jamieson Greer on Wednesday. The Hang Seng Index in China rose by as much as 3.7 percent before losing its gains as state funds intervened to support Chinese stocks. Investors also increased their bets on further stimulus measures to be implemented by Beijing. China's five-year interest rate swaps fell to their lowest level since 2020, signaling that monetary policy would be further loosened. The People's Bank of China pegged the yuan against the U.S. dollar at its weakest level since September 2023 to support exports. Additionally, Australia's ASX 200 index rebounded by 1.9 percent due to mining stocks, while South Korea's Kospi index showed a slight increase.

Is a comeback coming? U.S. stock futures also rose, with the S&P 500, Dow Jones Industrial Average, and Nasdaq composite all showing increases of more than 1 percent. The broad recovery in global stock markets could trigger similar movements in European stocks after three days of decline. However, analysts are skeptical about the sustainability of the recovery. Michael Brown, a senior research strategist at financial services firm Pepperstone, wrote in a note, "Unless there is a decisive policy change, I wouldn’t bet on a lasting bounce."