Trump threatens new 50% tariffs on China

In a significant development in international trade, President Donald Trump has issued a stern warning to China regarding tariffs on imported goods. He has threatened to impose an additional 50% tariff on Chinese products if China does not retract its own 34% counter-tariff on American goods. This escalation comes as global markets are experiencing a downturn. Just last week, Trump announced a 34% tax on Chinese imports as part of his 'Liberation Day' initiative, which established a minimum 10% tariff on nearly all of America's trading partners. In a post on social media, Trump gave China a deadline until Tuesday to eliminate its countermeasure or face the hefty 50% tax. The Chinese Ministry of Commerce responded by calling the proposed additional tariff 'a mistake on top of a mistake,' asserting that they would never accept what they termed the 'blackmail nature' of the United States. Should Trump follow through with his threat, American companies could be looking at a staggering total tariff rate of 104% on Chinese imports, as this new tax would be added to the existing 20% tariffs implemented in March and the 34% announced just last week. This situation has raised concerns about the potential for a trade war between the two largest economies in the world. In his social media post, Trump also declared that 'all talks with China concerning their requested meetings with us [on tariffs] will be terminated! ' Furthermore, he stated that he is not considering pausing the global import tariffs to facilitate negotiations with other countries. 'We're not looking at that. We have many, many countries that are coming to negotiate deals with us, and there are going to be fair deals,' he emphasized. Trump pointed out that China had initiated its countermeasure despite his warning that any country retaliating against the U. S. with additional tariffs would be met with new and significantly higher tariffs. In response, Beijing stated that 'pressuring or threatening China is not a right way to engage. ' Liu Pengyu, a spokesperson for the Chinese embassy, remarked that the U. S. actions serve its selfish interests at the expense of other countries' legitimate interests, prioritizing 'America first' over international regulations. He characterized the U. S. approach as a typical example of unilateralism, protectionism, and economic bullying. Speaking from the White House, Trump indicated that there could be both permanent tariffs and ongoing negotiations. 'We have $36 trillion debt for a reason,' he stated, adding that the U. S. would be engaging with China and other nations to secure a 'fair deal and a good deal. ' He reiterated, 'It's now America first. ' The proposed tariffs would significantly impact Chinese manufacturers, as the U. S. is a crucial market for their exports. China's leading exports to the U. S. include electrical products, machinery, computers, furniture, toys, vehicles, and equipment. Conversely, the U. S. 's primary exports to China consist of oilseeds, grains, aircraft, machinery, and pharmaceuticals. The uncertainty surrounding these tariffs has led to a sharp decline in global markets since Trump announced the global tariffs. On Monday, U. S. stock markets experienced a significant drop at the opening, although they later managed to recover some losses. In Europe, major markets, including London's FTSE 100, closed down by more than 4%. Asian markets also faced turmoil, with Hong Kong's Hang Seng index plummeting by over 13%, marking its largest single-day decline since 1997. However, on Tuesday, most major markets rebounded, with a few exceptions. The key index in mainland China remained relatively stable on Tuesday morning, while Taiwan and Singapore experienced further losses. After being closed for national holidays, Thailand and Indonesia saw their stocks fall by more than 4% and 9%, respectively. Trump's post on Monday also indicated that negotiations regarding tariff rates with other countries would 'begin taking place immediately. ' He met with Israeli Prime Minister Benjamin Netanyahu at the White House, where Netanyahu expressed his commitment to eliminating the trade imbalance with the U. S. , stating that it was 'the right thing to do. ' He assured that this would be done swiftly and that trade barriers would also be removed. Israel is facing a 17% tariff starting from April 9 under Trump's 'Liberation Day' policy. Additionally, Trump mentioned that Japan is sending a negotiation team to discuss tariffs. Ursula von der Leyen, the president of the European Commission, proposed a 'zero-for-zero tariff' deal to Trump, although she previously indicated that retaliation was not off the table. Trump later claimed that the EU was formed 'to really do damage to the United States and trade.