President Donald Trump is set to impose an additional 50% tariff on China, bringing total duties to 104%, White House press secretary Karoline Leavitt confirmed April 8 at a press briefing.
The move comes after China refused to back off its promise to impose a 34% retaliatory tariff on U.S. goods by noon April 8.
“Countries like China, who have chosen to retaliate and try to double down on their mistreatment of American workers, are making a mistake,” Ms. Leavitt said.
Here are five things to know:
- President Trump announced additional tariffs April 2, including a 10% baseline tariff on all imports, which took effect April 5. In addition, tariffs on dozens of trading partners are set to take effect April 9, with China facing a 34% tariff, India subject to a 26% tariff and the European Union subject to a 25% tariff.
- In response to the additional 34% tariff on China, leaders responded with a retaliatory tariff of 34% on U.S. goods to be imposed April 8. After the country refused to rescind the tariff plan, the Trump administration imposed an additional 50% tariff on Chinese imports, bringing total duties to 104%. These tariffs follow a 20% blanket tariff imposed in March.
- China’s commerce ministry said it “firmly opposes” the additional tariff amount, calling it “mistake upon mistake,” CNN reported April 8. The ministry also vowed to escalate the country’s retaliation on U.S. exports.
- While pharmaceuticals are excluded from the additional tariffs, they are not exempt from a universal 10% tariff on imports. Starting materials are also not exempt, with the American Society of Health-System Pharmacists warning that this could increase drug costs and exacerbate existing shortages.
For example, ING Bank projected the tariffs could increase the cost of heart medications by 15% and some cancer drugs by as much as 10% for a six-month supply. - Major industry groups, including the American Hospital Association and America’s Essential Hospitals, are urging the administration to grant exemptions for essential medications and medical devices.
“We request that medical equipment, supplies and pharmaceuticals be made exempt from tariffs to protect hospitals’ ability to ensure timely and appropriate access to care and improve health outcomes for Americans,” Beth Feldpush, DrPH, senior vice president of policy and advocacy at America’s Essential Hospitals, said in a statement shared with Becker’s.
