Trump’s 104% tariff blitz triggers global selloff as China vows to ‘fight to the end’
The Trump-China tariffs have escalated the ongoing trade war into full-scale financial turmoil, as a sweeping 104% duty on Chinese goods took effect today. The move triggered a global market meltdown and drew a furious response from Beijing.
The tariffs took effect at 12:01 am Eastern Time (0401 GMT), marking a seismic shift in international trade policy. Markets across Asia reeled in the immediate aftermath. Japan’s Nikkei plummeted more than 3%, Taiwanese stocks tumbled 5.8%, and the South Korean won fell to a 16-year low. In Australia, billions were wiped off stocks as markets sank by 2% amid widespread panic.
In the United States, the impact is already being felt. The S&P 500 closed below the 5,000 mark for the first time in nearly a year, with the index now teetering on the edge of a bear market—down nearly 20% from its recent high. In total, S&P 500 companies have seen $5.8 trillion vanish from their market value since Trump first announced the new tariffs last week.
This new wave of duties—billed as “reciprocal”—nearly doubles the previous tariff rate on Chinese imports, which stood at 54%. Trump’s move was framed as retaliation against counter-tariffs Beijing unveiled in recent days. China has responded with fury, warning that it would “fight to the end” against what it labelled economic blackmail.
Yet Trump struck a defiant tone. Speaking at the White House, he described the tariffs as “permanent” but claimed they were forcing countries to the negotiating table. “We have a lot of countries coming in that want to make deals,” he boasted, before later asserting that China would eventually cave to pressure.
As panic spread across financial markets, Chinese social media erupted with a blend of satire and nationalism. One of the top trending hashtags on Weibo read, “The US begs for eggs while fighting the trade war”—a pointed jab at America’s ongoing egg shortage. Users posted images of empty grocery shelves, mocking the US’s apparent inability to secure basic supplies while launching a global economic assault.
“If you can’t even handle an egg, why are you fighting a trade war?” one user asked.
The online backlash hinted at possible retaliation. Influential Chinese commentators floated the idea of banning US poultry and eggs—a move that would strike directly at American farmers already reeling from disrupted exports.
The tariffs have also spooked India’s vast pharmaceutical sector. Trump indicated that medicines may be next in the firing line. Just days ago, he hinted at a “major” new tariff on all pharmaceutical imports. Though India was initially spared, the sudden change in tone rattled markets. On Wednesday, Indian pharmaceutical stocks fell sharply, with giants like Gland Pharma, Lupin, and Sun Pharma posting steep losses.
Analysts say this could mark the beginning of a far deeper economic conflict. The existing tariffs are already upending the global order that’s shaped trade for decades. Now, developing nations across Asia face growing uncertainty.
From Tokyo to New Delhi and Wall Street to Qingdao, the fallout is being felt far and wide. With China digging in and Trump doubling down, the world may be only at the start of a brutal economic confrontation.
