- President Trump has warned China of an extra 50% tariff if it does not withdraw its 34% retaliatory levy.
- China has condemned the U.S. move as “economic bullying” and vowed to defend its interests.
- Markets worldwide have seen steep declines, including a 13% plunge in Hong Kong’s Hang Seng index.
- Trump says the U.S. is committed to “fair deals” and will continue global tariff policies despite mounting backlash.
Full Report:
Global financial markets are reeling as U.S. President Donald Trump escalates trade tensions by threatening China with a 50% additional tariff on Chinese goods if it fails to revoke its recently imposed 34% countermeasure. The latest round of economic brinkmanship comes on the heels of Trump’s sweeping “Liberation Day” tariff policy, which mandates a baseline 10% levy on imports from nearly all trading partners.
In a strongly worded post on Truth Social Monday, Trump gave China until Tuesday to comply, warning that “all talks with China concerning their requested meetings with us [on tariffs] will be terminated!” The move has sparked widespread concern on Wall Street and beyond, with stock markets tumbling globally.
Beijing responded swiftly, accusing Washington of “economic bullying.” A spokesperson from the Chinese embassy in Washington, Liu Pengyu, stated that “pressuring or threatening China is not a right way to engage,” labeling the U.S. measures as unilateralism and protectionism.
Should Trump enforce the new tariff, U.S. importers could face a combined duty of 104% on Chinese products—factoring in earlier 20% and 34% hikes. Key Chinese exports at risk include electronics, machinery, furniture, and vehicles, while U.S. exports such as oilseeds, aircraft, and pharmaceuticals are also vulnerable to retaliation.
Despite concerns from economists and investors, Trump insisted that he is “not considering a pause” on the tariffs and defended the policy by citing America’s $36 trillion national debt. “We’re going to get fair deals,” he said. “It’s now America First.”
The announcement has sent shockwaves through global financial markets:
- The S&P 500 and Dow Jones opened lower again Monday.
- Europe’s FTSE 100 closed over 4% down.
- The Hang Seng Index in Hong Kong saw a historic 13% plunge—its steepest since 1997.
- Other Asian markets including Japan’s Nikkei showed minor recoveries Tuesday after Monday’s steep sell-off.
The international business community now watches closely as this high-stakes standoff between the world’s two largest economies threatens to deepen into a full-blown trade war.
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