As Trump slaps 104% tariffs on China, Alicja Hagopian and Millie Cooke look at what industries will be hardest hit.

President Donald Trump has escalated the ongoing trade war with China by confirming a staggering 104% tariff on goods imported from the country, a move that can be expected to create ripples throughout the U.S. economy. With Chinese imports embedded across numerous key industries and vast supply chains, American consumers are poised to experience significant impacts, particularly as treasured devices like Apple’s iPhone face new cost burdens. This increased tariff comes as China responds with its own retaliatory measures, instituting an 84% tariff on U.S. goods, further intensifying the precarious trade relations between the two nations. Experts highlight that the U.S. is more reliant on Chinese goods than vice versa, with the gap in trade left widening; the U.S. imported around $438 billion in goods from China while exporting only $143.5 billion in the previous year. This disproportion means that while tariffs may aim to protect U.S. interests, it is likely that American consumers will bear the brunt of the costs. Several sectors stand to be notably affected by the tariff hikes. Electronics and machinery, with projected imports valuing over $208 billion in 2023, will see American staples such as computers, appliances, and batteries impacted. Moreover, pharmaceuticals, which heavily rely on Chinese ingredients, are expected to face price increases that may push patients towards potential medication noncompliance due to affordability issues. The fashion industry is not spared either, with popular brands like Nike and H&M likely to pass tariff costs onto their consumers. The agricultural sector is also projected to face substantial consequences; with China being a primary buyer, U.S. farmers may find themselves in a precarious position. Experts suggest these tariffs are targeting Trump’s political base in rural America, aiming to inflict enough economic pain to pressure him into modifying his approach. The article paints a grim picture not only of immediate economic upheaval but also the long-term ramifications for U.S.-China relations, which have been fraying over recent years. As tariffs disrupt established trade norms, they pose a risk not only to consumer goods but to the overall economic stability of both nations. The response from the U.S. financial markets has been tumultuous, reacting sharply to both tariff announcements and subsequent presidential tweets, showcasing the dependence of market behavior on geopolitical maneuvers. Investors, caught in the midst of Trump's trade strategies, have had to adapt to an increasingly volatile economic environment, influenced heavily by the president's social media declarations. In summary, this news report underscores the delicate balance in international trade, illustrating the potential fallout from aggressive tariff policies, which not only affects market dynamics but also poses threats to ordinary citizens accustomed to affordable goods. A comprehensive analysis by artificial intelligence suggests that the trade war may spiral further, creating uncertainty both domestically and internationally. A careful watch on upcoming negotiations between the U.S. and China is warranted, as economic stakes rise and potential avenues for resolution seem limited.