US President Donald Trump's sweeping tariffs came into effect on Wednesday, including a massive 104% duty on Chinese goods.
The new levies also targeted imports from allies, such as the European Union and Japan, sparking fears of a global trade war, with Trump saying the target countries are "ripping off" the US.
The customized rates for nearly 60 economies supersede the 10% baseline duties that took effect over the weekend.
China, the main target, faces the heaviest impact.
In tit-for-tat tariff impositions, China announced last Friday 34% in additional tariffs on all goods imported from the US, starting Thursday, matching Trump imposing new levies of 34% on China.
Trump responded by adding another 50% duty after China’s countermeasures, slapping a total of 104% duties on Chinese goods.
The Trump administration says nations like Japan, South Korea, and Vietnam are open to negotiations, with Trump telling fellow Republicans at a dinner on Tuesday evening that countries were "dying" to make a deal.
"I'm telling you, these countries are calling us up kissing my ass," he said.
The tariffs have rattled markets — wiping nearly $6 trillion off the S&P 500.
On Wednesday, Asian markets opened down again while China's offshore yuan fell to an all-time low against the US dollar. Oil prices also slumped.
Meanwhile, Canada said that its tariffs on certain US auto imports will come into force Wednesday.
Markets slide on Tuesday, China vows 'countermeasures'
Wall Street suffered more losses on Tuesday as concerns over US President Donald Trump's trade policies continued to spook investors with all three major indices closing in the red.
On Tuesday, European Commission chief Ursula von der Leyen spoke with Chinese Premier Li Qiang and stressed the need for stability in the global economy and avoiding "further escalation," according to an EU readout.
Beijing has threatened to take "countermeasures to safeguard its own rights and interests," in response to Trump's total tariffs of 104% on Chinese products.
The Chinese Commerce Ministry said the "US threat to escalate tariffs on China is a mistake on top of a mistake."
Meanwhile, European Union leaders scrambled to avoid a trade war with the US, as Trump imposes a 20% tariff on almost all imports from the bloc.
On Tuesday, the White House also had to step in to downplay a public spat between Elon Musk and a key Trump trade advisor, Peter Navarro.
Elon Musk took to X to call Navarro a "moron" who is "dumber than a sack of bricks."
The public spat has shed light on a rift between key Trump aides over the US president's decision to slap tariffs on nearly all trading partners.
Are Trump's tariffs 'reciprocal?'
US President Donald Trump and his economic team have repeatedly insisted that the reciprocal tariffs are simply returning the same barriers that US exporters face when selling to the same countries.
However, a range of economists, banks and financial institutions have pointed out that the tariffs are not reciprocal and that the formula Trump's team used to calculate them makes little economic sense.
Doug Irwin, a nonresident senior fellow at the Peterson Institute for International Economics and a renowned global trade expert, also says the tariffs are clearly not reciprocal for a number of reasons.
He told DW that a key point was that the formula used by the White House did not even take into account the levels of tariffs imposed by other countries, and simply took America's trade deficit in goods with each country and then divided it by the amount of goods imported into the US from that country.
Data from the World Trade Organization (WTO) backs up the arguments made by several economists that Trump's allegedly reciprocal tariffs will actually be far higher than most of those levied in the opposite direction.
Bill Reinsch, a senior economics adviser with the Center for Strategic and International Studies (CSIS), told DW that for more than 40 years, Trump has spoken about how he believes the US is being "ripped off" on global trade. He believes Trump genuinely wants to restructure global trade, which, however, has turned into a "revenge thing."
"The problem with it is he really only has one metric, which is the bilateral trade deficit, and he really only has one tool, which is tariffs," said Reinsch.
EU response to Trump's tariffs: a delicate balance
European Union trade ministers met on Monday in Luxembourg, weeks ahead of schedule, to address the fallout from the tariffs imposed by the United States.
The emergency meeting followed US President Donald Trump's announcement of sweeping 20% tariffs on nearly all EU exports, impacting goods valued over €532 billion ($585 billion) in 2024.
For the leaders the message was clear from the start: Europe will respond with both unity and determination, with Germany's outgoing Economic Minister Robert Habeck underscoring the need for European solidarity.
A proposed €25.7 billion tariff package on US goods will be voted on Wednesday in response to the first round of US tariffs on aluminum and steel back in March.
China vows to 'fight' as hefty US tariffs kick in
China declared its firm resolve to "fight till the end" in a trade war with Washington, after the United States' hefty 104% tariffs on Chinese goods came into effect on Wednesday.
"With firm will and abundant means, China will resolutely take countermeasures and fight till the end if the United States insists on further escalating economic and trade restrictive measures," Beijing's Commerce Ministry said in a statement reported by Xinhua news agency.
At the same time, the statement added that there are "no winners in a trade war."
"China does not want one, but the government will never allow the legitimate rights and interests of the Chinese people to be harmed or taken away."
With tariffs over 100%, China is by far the country hardest hit by the Trump administration's tariffs. Trump nearly doubled duties on Chinese imports, which had been set at 54% last week, in response to Chinese counter-tariffs of 34% on US goods levied last week.
Foreign Ministry spokesperson Lin Jian has accused the US of abusing "tariffs to pressure China," condemning what he described as American "bullying."
Meanwhile, China's top leaders are reportedly meeting as early as Wednesday to prepare economic support measures to boost the economy and stabilize the capital markets, according to Reuters.
At the same time, a White Paper on trade with the US released on Wednesday by China, said that economic friction between the two nations is normal, insisting that Beijing remains open to dialogue, Xinhua reported.
