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Undeterred by a stock market collapse that has continued for days, United States President Donald Trump threatened additional tariffs on China on Monday, raising fresh concerns that his drive to rebalance the global economy could intensify a financially destructive trade war.
Trump’s threat, which he delivered on social media, came after China said it would retaliate against US tariffs he announced last week.
“If China does not withdraw its 34 per cent increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL tariffs on China of 50 per cent, effective April 9th,” Trump wrote on Truth Social. “Additionally, all talks with China concerning their requested meetings with us will be terminated!”
Asked later Monday if he would consider a pause on tariffs that have threatened the global economy, Trump said, “We’re not looking at that”, but that he was open to negotiations.
If Trump implements new taxes on imports from China, US tariffs on Chinese goods would reach a combined 104 per cent. The new taxes would be on top of the 20 per cent tariffs announced as punishment for fentanyl trafficking and his separate 34 per cent tariffs announced last week. Not only could that increase prices for American consumers, it could give China an incentive to flood other countries with cheaper goods and seek deeper partnerships with other trading partners.
Trump faces mounting pressure in the financial markets and from business leaders to backtrack on his tariff ambitions, yet he has shown no signs of reversing course or finding a message to calm panicked markets. The White House said Monday that Trump would veto a Senate bill that would mandate congressional approval for new tariffs, a bet that the critical mass of Republican lawmakers will loyally back his taxes on imports despite the economic and political chaos being created.
The S&P 500 sank 0.2 per cent Monday. The Dow Jones Industrial Average fell 349 points, or 0.9 per cent, and the Nasdaq composite rose 0.1 per cent. The Dow was down earlier by as many as 1,700 points following even worse losses worldwide on worries that Trump’s tariffs could torpedo the global economy. It then surged to a gain after a rumour circulated that Trump may pause his tariffs. But the White House quickly denied the report, calling it “fake news”.
The frantic trading, which sent stocks spiking before plummeting again, showed how investors are operating on a hair trigger and are eager for any sign of encouraging news.
The Republican president has remained defiant despite fears that he could be pushing the US towards a recession, insisting that his tariffs are necessary for rebuilding domestic manufacturing and resetting trade relationships with other countries.
Investors expect the US central bank, the Federal Reserve, to cut its benchmark interest rates at least four times by the end of this year, according to CME Group’s FedWatch, a sign that concerns about inflation will be eclipsed by fears of layoffs and a shrinking economy.
On Sunday, Trump said that he wouldn’t back down from his tariffs despite the turmoil in the global markets.
“Sometimes you have to take medicine to fix something,” he said.
Goldman Sachs issued a new forecast saying a recession has become more likely even if Trump backtracks from his tariffs. The financial firm said economic growth would slow dramatically “following a sharp tightening in financial conditions, foreign consumer boycotts, and a continued spike in policy uncertainty that is likely to depress capital spending by more than we had previously assumed”.
European Commission President Ursula von der Leyen said the European Union would focus on trade with other countries besides the United States, saying there are “vast opportunities” elsewhere.
AP
English (US) ·