KEY POINTS
- Trump threatens to impose an additional 50% tariff on Chinese imports
- The new tariffs would take effect on April 9, 2025
- Trump warns of terminating talks with China if its 34% tariff increase is not reversed
- The US stock market plunged following Trump’s tariff announcement
- Trump’s tariffs have sparked fears of a global recession and increased inflation
- EU and other nations are considering retaliatory measures against the US
- US allies are seeking exemptions or delays on the newly imposed tariffs
WASHINGTON: US President Donald Trump on Monday threatened to impose an additional 50 percent tariff on Chinese imports if Beijing does not withdraw its retaliation plans by April 8, 2025.
The announcement, made via a post on his Truth Social platform, comes as trade tensions between the two largest economies in the world continue to escalate.
Trump’s ultimatum to China
In his post, Trump warned that if China fails to reverse a planned 34 percent increase on US goods by April 8, the United States would introduce new tariffs of 50 percent on Chinese imports starting on April 9.
Trump added that talks between the two nations would be immediately terminated, indicating that the US was prepared to sever dialogue with China in response to its retaliation measures.
“If China does not withdraw its 34 percent increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50 percent, effective April 9th,” Trump wrote.
Trade war and market volatility
The latest threat comes after Trump’s sweeping “Liberation Day” tariffs, which he introduced last week.
These tariffs were aimed at curbing what the US administration calls China’s long-standing trade abuses, including intellectual property theft and unfair trade practices.
In retaliation, Beijing has imposed its own 34 percent tariffs on US goods, set to take effect on April 10.
Trump’s protectionist policies have already shaken global markets. Following the announcement, the Dow Jones Industrial Average plunged by 1,200 points, while the S&P 500 index neared a bear market.
The global stock market rout deepened on Monday, with Asian markets suffering significant losses, including a dramatic 13.2 percent drop in Hong Kong’s Hang Seng index—the largest decline since the 1997 Asian financial crisis.
Global economic impact
The imposition of new tariffs has raised fresh concerns about the global economic outlook, with experts warning that these trade tensions could lead to a broader recession.
The tariffs could also exacerbate inflationary pressures, particularly in the US, as businesses face increased costs for Chinese imports.
JPMorgan Chase CEO Jamie Dimon warned on Monday that the tariffs “will likely increase inflation” and could slow down economic growth, though it remains uncertain whether they will lead to an outright recession.
ALSO READ: Global Stock Markets Tumble on Trump’s Tariff Turmoil Amid Recession Fears
Despite the turmoil, Trump remained defiant, urging Americans to remain “strong, courageous, and patient” in the face of potential economic hardships. “Greatness will be the result!” he wrote on social media.
Global reactions to Trump’s tariffs
Trump’s tariffs have drawn widespread international condemnation. The European Union is considering its own retaliatory measures, with officials discussing potential taxes on US goods, including tech giants.
German Economy Minister Robert Habeck hinted at the possibility of using Europe’s new anti-coercion mechanism to impose harsh sanctions on countries that use economic threats.
Meanwhile, US allies have been forced to navigate the fallout. Israel, despite being one of Washington’s closest partners, faces a 17 percent tariff, prompting Prime Minister Benjamin Netanyahu to meet with Trump on Monday.
Other countries, including Japan and Vietnam, have reached out to negotiate delays or exemptions from the tariffs.
