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Amid escalating trade tensions, former President Donald Trump has threatened to impose a significant 50% tariff increase on Chinese goods entering the United States, intensifying concerns as global markets experienced a third consecutive day of decline. This development underscores the ongoing economic friction between the US and China and its reverberating effects worldwide.
Trump Threatens Further Tariff Hikes on China
Speaking at the White House on Monday, the former US president dismissed any notion of pausing the recently announced extensive tariffs to facilitate negotiations with international partners.
“We are not considering that approach. Numerous nations are eager to engage in deal-making with us, and these will be equitable agreements,” he stated to reporters.
Trump reiterated his warning of supplementary 50% duties on Chinese products should Beijing fail to rescind its counter-tariff measures by Tuesday.
Social Media Announcement on Tariffs
In a message posted on his social media platform, Truth Social, Trump declared his intention to implement the additional tariff unless China retracted its 34% retaliatory tariffs on American goods, which were announced the previous Friday.
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Last Wednesday, Trump initially announced a 34% levy on Chinese imports as part of his “Liberation Day” policy, which established a minimum 10% tax on imports from nearly all of America’s trading partners.
Should this additional tariff be enacted, American companies would face a cumulative import tax of 104% on Chinese goods. This figure combines the new 50% with existing tariffs, including the 20% tariffs implemented in March and the initial 34% announced last week.
Trump asserted that China had initiated its countermeasures “despite my caution that any nation retaliating against the U.S. through additional Tariffs… will be immediately confronted with new and significantly elevated Tariffs.”
China Responds to US Tariff Threats
Beijing swiftly responded, asserting that “pressuring or threatening China is not a constructive method of engagement.”
Chinese Embassy spokesperson Liu Pengyu issued a statement criticizing the US approach. “The U.S.’s hegemonic action, cloaked in the guise of ‘reciprocity,’ serves its own selfish interests at the expense of other countries’ legitimate interests and prioritizes ‘America first’ over established international norms,” Liu stated.
“This is a quintessential example of unilateralism, protectionism, and economic coercion.”
Speaking from the White House, the former US president suggested the possibility of both enduring tariffs and ongoing negotiations.
“Our national debt stands at $36 trillion for a reason,” he commented, adding that the US would engage in discussions with China, among other nations, to achieve “an equitable and beneficial agreement.”
“The guiding principle now is America first,” the former US president declared.
Global Markets React to Trade Uncertainty
The mounting tensions between the US and China have amplified fears of a potential global trade war. These tariffs pose a considerable setback for Chinese manufacturers, for whom the US represents a vital export market.
The ambiguity surrounding the tariffs precipitated a volatile day in global stock markets.
Worldwide markets have been in decline since Trump’s announcement of new tariffs targeting imports from almost all economies.
US stock market values plummeted again at the opening bell, while major European markets, including London’s FTSE 100, all registered closures exceeding 4% losses.
Asian stock indices experienced sharp downturns, with Hong Kong’s Hang Seng index enduring a plunge of over 13%, marking its most significant single-day drop since 1997.
The ramifications on the FTSE 100, America’s S&P 500, Germany’s Dax, and Japan’s Nikkei have been widespread.
Negotiations and International Responses
Trump’s social media post also indicated that discussions concerning countries’ tariff rates “will commence imminently.”
Trump’s Monday schedule included a meeting with Benjamin Netanyahu, Israel’s Prime Minister, at the White House. Netanyahu conveyed that Israel intended to rectify its trade imbalance with the US, deeming it “the appropriate course of action.”
“We plan to accomplish this expeditiously… and we are also committed to removing trade barriers,” Netanyahu affirmed.
Israel is facing a 17% tariff effective April 9 under Trump’s “Liberation Day” policy.
The former US president had also posted earlier about Japan dispatching a negotiation team to address tariff concerns.
Furthermore, Ursula von der Leyen, President of the European Commission, proposed a “zero-for-zero tariff” agreement to Trump – even though she had previously indicated that retaliation remained a possible option.
“We are also prepared to react with countermeasures and safeguard our interests,” she stated.
Trump later asserted that the EU’s formation was “principally designed to inflict harm upon the United States and its trade.”