As the turmoil escalates, President Donald Trump is set to impose a staggering 104% tariff on all Chinese imports starting Wednesday, as announced by White House Press Secretary Karoline Leavitt on Tuesday. This new levy is in addition to the existing tariffs on Chinese goods that were implemented before Trump’s second term.

China was already facing a 34% tariff increase scheduled for Wednesday as part of Trump’s “reciprocal” tariffs initiative. However, the president added another 50% after Beijing reaffirmed its commitment to impose 34% retaliatory tariffs on U.S. goods by noon on Tuesday, bringing the total additional duties to 84%.

Earlier on Tuesday, China’s Commerce Ministry strongly opposed the new 50% tariffs, calling them “a mistake upon a mistake.” The ministry pledged to escalate its retaliation against U.S. exports.