China and US Tariff War Explained as Trump Threatens 104% Rates
The trade tensions between the United States and China are back in the headlines — and this time, former President Donald Trump is dialing the rhetoric up to 104%. Literally.
In a recent speech, Trump threatened to impose tariffs of up to 104% on Chinese-made cars if he returns to office, reigniting fears of a full-blown tariff war between the world’s two largest economies. His comments have sent shockwaves through global markets, prompted firm responses from Beijing, and raised serious questions about the future of international trade.
But what’s behind this? And how did we get here?
The U.S.-China trade war began in earnest during Trump’s first term, starting in 2018, when his administration slapped tariffs on hundreds of billions of dollars’ worth of Chinese imports. The goal, according to Trump, was to address what he called “unfair trade practices,” including intellectual property theft, forced technology transfers, and the massive U.S. trade deficit with China.
China retaliated with tariffs of its own, targeting American agriculture, manufacturing, and other key sectors. What followed was a tit-for-tat escalation that impacted everything from soybeans and steel to electronics and apparel. Consumers on both sides felt the pinch. Businesses scrambled to adjust supply chains. And global markets fluctuated with each new announcement.
While some tariffs were scaled back under the Biden administration in an attempt to cool tensions, many remained in place. Now, Trump is threatening to take things even further — especially targeting Chinese electric vehicles (EVs), which he claims pose a direct threat to American jobs and national security.
“China is dumping cars into our markets, undermining our auto industry,” Trump said. “If I’m back in the White House, they’re going to face tariffs of up to 104%. We’re not going to let them flood our country with cheap goods anymore.”
This threat appears aimed squarely at China’s fast-growing EV sector, which has rapidly expanded thanks to aggressive government subsidies and low-cost manufacturing. Brands like BYD and NIO are starting to eye international expansion, including into the U.S. and Europe, and Trump wants to stop that before it takes root.
China has not taken the threat lightly. Officials in Beijing have called the tariff plan “economic coercion” and warned of “necessary countermeasures.” Analysts say a new round of tariffs could hit U.S. tech, agriculture, or even aircraft industries — sectors where American companies rely heavily on access to Chinese markets.
So what does this all mean for the average person? Higher prices, for one. Tariffs often result in cost increases for imported goods, and companies tend to pass those increases on to consumers. If this trade war escalates again, American buyers could see more expensive cars, electronics, and everyday goods — while U.S. farmers and manufacturers might lose access to their second-largest export market.
In short, the U.S.-China tariff war is far from over. With Trump raising the stakes and global competition intensifying, the next chapter in this economic standoff could be the most dramatic yet.
