RIGHT NOW: Done – monster tariffs against China tonight

Donald Trump

The message: Monster tariffs tonight

Emil Forsberg

Updated 20.15 | Published 19.18

Donald Trump wrote that he was waiting for the call from China.

Three hours later, patience ran out.

Now tariffs are being raised to 104 percent.

           

            Trump's demand: buy gas and oil for 350 billion dollars

            1:49

China's decision to match Donald Trump's 34 percent tariffs made the American president see red.

On Monday, he threatened to raise them by another 50 percent to a breathtaking 104 percent.

On Tuesday, Trump announced on Truth social that he was close to a new deal with the South Korean president and claimed that China was desperate to do the same.

– We are waiting for their call.

But on Tuesday evening, Swedish time, Trump took action.

White House press secretary Karoline Leavitt. Photo: Alex Brandon/AP

White House press secretary Karoline Leavitt told Fox News that the 50 percent increase in tariffs will take effect at midnight.

China manager Gustav Rhenman at Asia Growth Capital Management said on Tuesday that he does not believe that the blow against China will be what Trump had hoped for.

– China exports about $500 billion in goods to the United States every year. So if those tariffs go through, an even larger part of those exports will be lost, but that only corresponds to 2.8 percent of China's GDP. It will be noticeable, but it is not a huge disaster in China.

Rhenman rather believes that the tariff war will lead to concerns for the United States.

– They will continue to buy from China, but it will be expensive and it will drive up inflation, which means that the Fed cannot lower interest rates. That makes it very expensive for the US to roll over its national debt, he says and continues:

– China also has the advantage of not having an election every four years. Trump has to succeed in this within a year and a half. China has much greater freedom of action.

Chinese President Xi Jinping. Photo: Ng Han Guan/AP

At a press conference, Karoline Leavitt stated that inquiries from around the world about making a deal with the US are now pouring in.

– We are up to 60-70 inquiries now. Now it is the end game, she says.

China stated on Monday that it will not give in to Trump's tariffs and that it "will fight to the end".