Treasury Secretary Scott Bessent announced that goods imported from China will face a new combined tariffs rate of 54%, consisting of a 34% newly imposed rate and a previously established 20% rate. Major retailers are experiencing stock declines due to this development. The Australian Prime Minister criticized the tariffs as detrimental to trade relationships and American households.

On Wednesday, Treasury Secretary Scott Bessent announced that goods imported from China will now be subjected to a significant total tariffs rate of 54%. This figure comprises a newly calculated 34% tariff rate imposed by the White House, based on the tariffs currently levied on U.S. exports, in addition to the existing 20% rate established during President Trump’s initial weeks in office.

Bessent remarked that there is potential for negotiation regarding the imposed tariffs, although it appears that President Trump may prefer to maintain the status quo for the time being. He stated, “It’s going to be up to President Trump to see what he wants to do. I think the mindset might be to let things settle for a while.” Despite expectations for communication regarding the tariffs, Bessent expressed uncertainty about the likelihood of negotiations taking place.

The United States imports almost $500 billion worth of Chinese goods annually, making China the third-largest source of foreign imports. Consequently, major retailers, which greatly depend on inexpensive goods sourced from China, experienced a decline in their stock prices during after-hours trading; for instance, Target fell by 5.5% while Walmart dropped by 4.7%.

Chinese officials have yet to respond to Trump’s tariff announcement as of Wednesday evening, with no immediate comments forthcoming from the U.S. embassy in China. The tariffs, which are expected to create disturbances in established global trading relationships, have ignited fierce reactions from markets and trading partners.

Australian Prime Minister Anthony Albanese articulated his concerns during a press conference, stating, “The administration’s tariffs have no basis in logic, and they go against the basis of our two nations’ partnership. This is not the act of a friend.” Albanese further noted that these new tariffs would not only affect longstanding partners but also American families, emphasizing the heightened uncertainty they will introduce into the global economy.

The recent announcement of a 54% tariffs rate on imported goods from China signifies a major shift in U.S. trade policy, eliciting responses both from industry stakeholders and international partners. The combination of new and existing tariffs has seen immediate repercussions in the stock market, indicating a potential adverse economic impact. The decision has drawn criticisms for its lack of logical basis and its implications for global economic stability, particularly as expressed by leaders such as the Prime Minister of Australia.

Original Source: www.nbcnews.com

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