Trump threatens to hike China tariffs further as market plunge continues
Published: 04:04 PM,Apr 07,2025 | EDITED : 08:04 PM,Apr 07,2025
US President Donald Trump threatened to further increase tariffs on China on Monday, raising the possibility of further escalation in a trade war that has already wiped trillions of dollars from global markets.
Trump said he would impose an additional 50% duty on US imports from China on Wednesday if the world's No 2 economy did not withdraw the 34% tariffs it had imposed on US products last week.
Those Chinese tariffs had come in response to 34% 'reciprocal' duties announced by Trump.
'All talks with China concerning their requested meetings with us will be terminated!' he wrote on social media. The announcement injected further turbulence into global financial markets, which have fallen steadily since Trump's announcement. A 10% tariff took effect on all imports into the world's largest consumer market on Saturday, and targeted duties of up to 50% are due to snap into place on Wednesday.
US stocks briefly stopped their downward slide after a report that Trump was considering a 90-day tariff pause, then turned negative again after the White House
dismissed the report as 'fake news.' The S&P 500 index was headed toward a 20% drop from its February high.
Asian and European shares also plunged as investors feared the duties Trump has likened to 'medicine' could lead to higher prices, weaker demand and potentially a global recession. Goldman Sachs raised the odds of a US recession to 45%.
The European Union said it would start collecting retaliatory duties on some US goods next week, even as officials said they stood ready to negotiate a 'zero for zero' deal with Trump's administration.
'Sooner or later, we will sit at the negotiation table with the US and find a mutually acceptable compromise,' EU Trade Commissioner Maros Sefcovic said at a news conference.
Trump said he would impose an additional 50% duty on US imports from China on Wednesday if the world's No 2 economy did not withdraw the 34% tariffs it had imposed on US products last week.
Those Chinese tariffs had come in response to 34% 'reciprocal' duties announced by Trump.
'All talks with China concerning their requested meetings with us will be terminated!' he wrote on social media. The announcement injected further turbulence into global financial markets, which have fallen steadily since Trump's announcement. A 10% tariff took effect on all imports into the world's largest consumer market on Saturday, and targeted duties of up to 50% are due to snap into place on Wednesday.
US stocks briefly stopped their downward slide after a report that Trump was considering a 90-day tariff pause, then turned negative again after the White House
dismissed the report as 'fake news.' The S&P 500 index was headed toward a 20% drop from its February high.
Asian and European shares also plunged as investors feared the duties Trump has likened to 'medicine' could lead to higher prices, weaker demand and potentially a global recession. Goldman Sachs raised the odds of a US recession to 45%.
The European Union said it would start collecting retaliatory duties on some US goods next week, even as officials said they stood ready to negotiate a 'zero for zero' deal with Trump's administration.
'Sooner or later, we will sit at the negotiation table with the US and find a mutually acceptable compromise,' EU Trade Commissioner Maros Sefcovic said at a news conference.