President Donald J. Trump participates in a bilateral meeting with President Xi Jinping at the Great Hall of the People on Thursday, November 9, 2017, in Beijing, People’s Republic of China. Official White House photo by Shealah Craighead.
Guacamaya, April 9, 2025. The White House confirms the move after Beijing maintained its retaliatory tariffs, while China consolidates its digital yuan to challenge the dominance of the dollar.
The United States will impose a 104% tariff on Chinese products starting today, following Beijing’s failure to meet the ultimatum issued by President Donald Trump to withdraw its retaliatory measures. White House Press Secretary Karoline Leavitt confirmed the decision to Fox News, marking a new chapter in the escalating trade war between the two powers.
Trump’s Warning and China’s Response
The U.S. president had warned on Monday that if China did not eliminate its 34% tariffs on U.S. products scheduled to go into effect on April 10, Washington would respond with an additional 50% increase.
The measure adds to the existing 54% tariffs, which included a base rate of 20%, announced last week as part of Trump’s “global reciprocal tariffs” policy. Beijing, for its part, maintained its stance and confirmed it would apply its own 34% tariff on U.S. imports starting tomorrow.
Trump Imposed 25% Tariffs on Venezuelan Oil Buyers, Targeting China
The measure announced in recent days aims to pressure Beijing, Venezuela’s main customer with 500,000 barrels per day, amid the escalating trade war between the two powers.
The executive order, issued a few days ago, has a dual purpose: to weaken and further suffocate the Venezuelan economy, already under U.S. sanctions, and to punish China, a key trade partner of Venezuela, which obtains discounted oil in the context of avoiding international sanctions. This benefits China’s energy supply.
China Accelerates Its Financial Offensive with the Digital Yuan
As trade tensions reach new heights, China is advancing its strategy to reduce reliance on the Western financial system. Since March 17, Beijing has activated its “cross-border payment network in digital yuan,” a move that threatens the dominance of the dollar and the SWIFT system.
- Ten ASEAN countries and six Middle Eastern nations, representing 38% of global trade, are already conducting transactions outside the traditional system.
- Transfers that previously took 3 to 5 days with SWIFT are now completed in 7 seconds, with a 98% reduction in fees.
- Twenty-three central banks are participating in system trials, and oil traders have reduced their settlement costs by 75%.
The digital yuan also allows for full traceability and automatic enforcement of anti-money laundering regulations. Pilot projects, such as one in Indonesia, have demonstrated its effectiveness: a cross-border payment was completed in 8 seconds.
With yuan-based trade growing by 120% since 2021 in ASEAN and countries like Malaysia and Singapore including it in their reserves, the economic battle extends beyond tariffs. The question now is how much further this war will escalate and whether it will lead China to retaliate in non-trade areas.
