Chinese goods subject to tariffs of at least 145%, White House says

U.S. President Donald Trump turned up the heat on China on Thursday, raising the total levy on imports from the country to 145 per cent, according to a CNBC report, citing the White House.

The S&P 500 was down five per cent in midday trading, slicing into Wednesday's surge of 9.5 per cent following Trump's decision to pause many of his tariffs worldwide. The Dow Jones Industrial Average was down 1,724 points, or 4.2 per cent, as of 12:40 p.m. ET.

In some cases, CNBC reported, the tariffs on Chinese good amount to more than 145 per cent, as tariffs from Trump's first administration still apply.

Before Trump's pause on Wednesday on country-specific tariffs he announced a week earlier, the upheaval had erased trillions of dollars from stock markets and led to an unsettling surge in U.S. government bond yields that appeared to catch the U.S. president's attention.

"While yesterday seemed to be a significant rally in the face of good news in terms of the potential for negotiations, the bad news is the trade war with China continues to escalate," said Art Hogan, chief market strategist at B. Riley Wealth.

'Self-inflicted wound': Yellen

China has rejected what it called threats and blackmail from Washington.

China will "follow through to the end" if the U.S. insists on its own way, Commerce Ministry spokesperson He Yongqian told a regular press briefing. China's door was open to dialogue, but this must be based on mutual respect, the ministry said.

Beijing may again respond in kind after imposing 84 per cent tariffs on U.S. imports on Wednesday to match Trump's earlier tariff salvo.

Trump claims the tariffs are intended to fix U.S. trade imbalances, though a large majority of economists don't view a trade deficit alone as a sign of a country's economic health.

China's yuan hit its lowest level against the U.S. dollar on Thursday since the global financial crisis began.

Trump's reversal on the tariffs imposed on other countries is also not absolute. A 10 per cent blanket duty on imports from dozens of countries remains, while Canada continues to face 25 per cent tariffs on steel and aluminum and some vehicles.

U.S. Commerce Secretary Howard Lutnick and White House economic adviser Kevin Hassett said several countries are currently negotiating with the U.S. concerning the tariffs.

While the U.S. officials have welcomed those talks, former treasury secretary Janet Yellen, in an interview with CNN, described the tariffs as "the worst self-inflicted wound that I have ever seen ... imposed on a well-functioning economy."

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