U.S. President Donald Trump warned on Monday that he would impose an additional 50 percent tariff on Chinese imports if Beijing does not withdraw its retaliatory tariffs against the United States.
“Also, all talks with China regarding meetings they have requested with us will be terminated. Negotiations with other countries, which have also requested meetings, will begin immediately,” Trump wrote on Truth Social.
Last week, Trump imposed 34 percent tariffs on Chinese goods as part of a broader move targeting most of America’s major trading partners.
Beijing responded on April 4 by imposing a 34 percent tariff on American goods and announced tighter controls on exports of rare minerals essential for manufacturing computer chips and electric vehicle batteries.
Trump’s latest threat sent fresh shockwaves through global financial markets, which had already been declining since last week’s tariff announcement.
A base tariff of 10 percent took effect on all imports into the U.S. on Saturday, while tariffs on some countries could reach up to 50 percent starting Wednesday.
U.S. stocks briefly stabilized after reports suggested Trump might consider a 90-day pause on the new tariffs, but losses resumed after the White House dismissed the report as “fake news.”
Analysts warn that the tariffs could lead to higher prices, reduced demand, and potentially trigger a global recession.
Meanwhile, Elon Musk, the world’s richest person and a close Trump ally, said he hopes to see zero tariffs between the U.S. and Europe. On Monday, Musk posted a video of economist Milton Friedman praising free international trade.
Investors and political leaders remain uncertain whether Trump’s tariffs represent a permanent shift in U.S. trade policy or simply a negotiation tactic.
However, some fear that a retaliatory response from Europe could escalate the situation further and hurt European exporters.
