Payam Javan: President Donald Trump’s sweeping trade policies took effect on April 9, 2025, with a 104 percent tariff imposed on all Chinese goods entering the United States, alongside higher reciprocal tariffs ranging from 11 to 50 percent on dozens of other nations. The measures, which include a 50 percent hike on Chinese imports and a 90 percent tariff on low-value packages from China effective June 1, aim to address the U.S.-China trade deficit and counter non-monetary trade barriers like currency manipulation and industrial subsidies. The White House confirmed Trump’s commitment to these tariffs, with Press Secretary Karoline Leavitt stating that the president would respond forcefully to retaliation but remain open to gracious negotiations if China seeks a deal.

China vowed to retaliate with matching tariffs and punitive measures, escalating tensions in the $600 billion annual U.S.-China trade relationship. Treasury Secretary Scott Bessent called Beijing’s response a “big mistake,” arguing that China’s weaker export position leaves it vulnerable. Meanwhile, nearly 50 to 70 countries have approached the U.S. for trade talks, with Japan and South Korea prioritized for negotiations. Markets reacted with volatility, as U.S. stock futures dropped over 1 percent and crude oil prices fell below $58 per barrel, raising concerns about stagflation among investors despite upcoming economic data suggesting a slight easing of inflation.