The United States will impose a 104% tariff on China from 12:01 AM ET (0401 GMT) on Wednesday, a White House official said after Beijing did not lift its retaliatory tariffs on US goods by a noon Tuesday deadline set by US President Donald Trump.

The United States also said it will also take back the Panama Canal from Chinese influence, Defense Secretary Pete Hegseth said on Tuesday during a visit to the Central American nation.

Hegseth, following talks with Panama’s government, vowed to deepen cooperation and said China would not be allowed to “weaponize” the canal by using Chinese firms’ commercial relationships for espionage.

“Together, we will take back the Panama Canal from China’s influence,” Hegseth said