The United States said Tuesday that 104% tariffs on Chinese imports would go into effect shortly after midnight, even as the Trump administration moved quickly to begin talks with other trading partners targeted by President Donald Trump's sweeping tariff plans.

U.S. stocks slumped on the news. Global markets had earlier posted gains on hopes that Trump might be willing to negotiate a series of country- and product-specific trade barriers he has built around the world's largest consumer market.

The administration has scheduled talks with South Korea and Japan, two close allies and major trading partners, and Italian Prime Minister Giorgia Meloni is due to visit next week.

But the White House said the country-specific tariffs of up to 50% would go into effect at 12:01 a.m. Eastern Time (0401 GMT), as planned. The tariffs would be particularly high for China, as Trump has already raised tariffs on its imports to 104 percent in response to retaliatory tariffs announced by Beijing last week. China has refused to bow to what it calls "blackmail" and has vowed to "fight to the end." Administration officials have said they will not prioritize negotiations with the world's No. 2 economy.

Trump's sweeping tariffs have raised fears of a recession and upended a global trade order that has been in place for decades. "Right now, we have been instructed to prioritize our allies and trading partners like Japan and Korea and others," White House economic adviser Kevin Hassett said on Fox News. The White House said Trump instructed his trade team to work out "tailor-made" deals for the nearly 70 countries that have reached out to talk.

Trump's top trade negotiator, Jamieson Greer, told Congress that his office was trying to work quickly but did not have a specific deadline. "The president has made it clear, once again, that he is not going to grant waivers or exemptions anytime soon," Greer told lawmakers.

China is bracing for a war of attrition, with manufacturers warning about profits and scrambling to plan new factories overseas. Citing rising external risks, Citi cut its 2025 GDP growth forecast for China to 4.2% from 4.7%. (Newsmaker23)

Source: Reuters