Former US President Donald Trump has warned of imposing a 50% tariff on Chinese imports if Beijing does not withdraw its recently announced 34% counter-tariff. 

The threat marks another escalation in the ongoing trade dispute between the world’s two largest economies.

China’s latest move was in response to Trump’s “Liberation Day” policy, under which a 34% duty was slapped on Chinese goods, alongside a minimum 10% tariff targeting most of America’s trading partners.

In a post on Truth Social, Trump gave China a Tuesday deadline to remove its retaliatory tariffs or face an additional 50% levy. 

If enacted, the combined duties on Chinese goods could reach a staggering 104%, factoring in previous tariffs imposed in March.

The Chinese embassy in Washington condemned the move, calling it “economic bullying” and warning that Beijing would “firmly defend its legitimate rights and interests.” Spokesman Liu Pengyu said the US was pursuing “unilateralism and protectionism” under the guise of fairness.

Trump has also threatened to halt all tariff talks with China, insisting that the US would not pause its global tariff strategy. “We’re not looking at that,” he said, asserting the goal of striking “fair” trade deals with multiple countries.

Global markets reacted sharply to the developments. US indices plunged at opening on Monday before recovering slightly, while major European markets closed over 4% lower. 

In Asia, Hong Kong’s Hang Seng index tumbled more than 13%—its steepest one-day drop since 1997—though most Asian markets showed signs of recovery on Tuesday.

Despite the turmoil, Trump said trade talks with various nations, including Japan and the EU, were underway, reaffirming his "America First" stance and his aim to secure what he called “fair and good deals.”

Source: BBC

BDST: 1354 HRS, APR 08, 2025
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