US President Donald Trump has threatened an additional 50% tariff on Chinese imports if Beijing does not remove its retaliatory tariffs on American exports. This announcement follows China’s recent imposition of a 34% tariff hike in response to U.S. tariffs introduced last week.
BREAKING : 🇺🇸President #Trump threatens additional 50% tariff on #China if it does not withdraw its 34% tariff increase.#tarrifs #TrumpTariffs pic.twitter.com/kRkLbmxrlt
— ChainAffairs ⚡ (@ChainAffairs) April 7, 2025
Trump, who made the declaration on his Truth Social platform, warned that unless China lifts its duties by April 8, his administration will take aggressive action by levying the additional 50% charge. The threat signals a potential escalation in the long-running trade dispute between the world’s two largest economies — one that could have far-reaching consequences for global markets.
Global Markets Tumble on Tariff Fears
The impact of Trump’s tariff rhetoric is already being felt. U.S. stock markets opened sharply lower on Monday, marking the third consecutive trading session of losses. Analysts cite investor fears over rising costs, disrupted supply chains, and the possibility of a prolonged trade conflict as key contributors to the downturn.
Asian markets mirrored the U.S. slump, with significant losses reported across major indices in Japan, South Korea, Singapore, Australia, and India. The renewed tension is casting a shadow over global trade and investment sentiment, just as many economies were beginning to recover from prior geopolitical and inflationary pressures.
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Escalating Trade War Risks
Trump’s proposed tariff hike comes amid his 2024 presidential campaign, where he continues to emphasize a tough stance on China as a central theme. The move is likely aimed at appealing to his base by reinforcing his commitment to protecting American manufacturing and reducing trade deficits.
However, economists warn that further escalation could weaken consumer spending power and business confidence in both nations, especially if China responds with additional countermeasures.
As the April 8 deadline looms, the world watches closely. A full-blown trade war could not only dampen U.S.-China relations but also destabilize global markets at a critical juncture.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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