President Donald Trump warned on Monday that the United States would impose an additional 50% tariff on Chinese imports if Beijing does not roll back a recently announced retaliatory duty on US goods.
The threat marks an escalation in trade tensions and raises the stakes ahead of an April 8 deadline.
“If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump wrote on social media.
The president also said that ongoing discussions with China would be halted. “All talks with China concerning their requested meetings with us will be terminated!” he posted.
Trump added that the US would begin talks with other countries that had requested meetings.
The statement follows a series of sharp tariff hikes imposed by the US on imports from several major trading partners, including Vietnam and Taiwan, prompting concerns across the corporate and investment landscape.
US stocks take a tumble again
US stocks fell in volatile trading as investors weighed the possibility of another round of steep tariffs.
The Dow Jones Industrial Average briefly moved into positive territory early in the session, driven by speculation that the administration might delay the tariff rollout.
However, those gains quickly reversed after a White House official said that any reports of a 90-day tariff pause were “fake news,” reinforcing the administration’s hardline stance.
The market has been under pressure since the White House announced high tariff rates across a range of key partners.
The prospect of a 50% tariff on Chinese goods has added to investor uncertainty, with analysts warning of rising costs for US companies and the risk of a broader slowdown in global trade.
China is among the US’s largest trading partners, and any further escalation could have wide-reaching implications for supply chains, earnings, and consumer prices.
Global market bleed on Monday
Asian and European markets plunged on Monday, deepening a global selloff sparked by President Donald Trump’s sweeping tariff announcement.
Tokyo’s Nikkei 225 index fell nearly 8% shortly after the open, while Chinese markets—typically less reactive to global shocks—also faced intense pressure.
Hong Kong’s Hang Seng index crashed 13%, and the Shanghai Composite lost 7%.
India wasn’t spared either. The Sensex closed 3% lower at the ₹73,100 level, while the Nifty 50 ended at 22,160.
In Europe, markets sank to 16-month lows after reports that the European Union was preparing retaliatory tariffs.
The pan-European STOXX 600 dropped 5.2% to 470.52, compounding Friday’s 5.1% loss that had already pushed it into correction territory. Germany’s DAX slid 5.7%, France’s CAC 40 declined 5.2%, and the UK’s FTSE 100 dropped 5.1%.
The extended two-day rout has erased trillions in global equity value, with volatility surging and investor sentiment rattled as the prospect of a full-blown trade war gains traction.
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