US President Donald Trump has threatened a new 50% tariff on Chinese imports. The tariff will apply if China doesn’t withdraw its retaliatory tariffs against the US by April 8, 2025.
White House officials said this would increase the total tariff on Chinese goods to 104%.
Trump posted on Truth Social that if China doesn’t withdraw its 34% increase by April 8, the US will impose the additional 50% tariff effective April 9. He added that all talks with China about requested meetings would end, and negotiations with other countries would begin immediately.
The conflict began when Trump set a 20% tariff on Chinese imports. He then added 34% more on April 2, 2025, bringing the total to 54%. The White House called this date “Liberation Day.”
China responded with its own 34% duties on US goods, set to take effect on April 10.
Chinese vice-commerce minister Ling Ji said these retaliatory duties aim to bring the US back to the multilateral trade system. Ling told US company representatives on April 6 that “the root cause of the tariff issue lies in the United States.”
Global markets reacted strongly to the trade tensions. Hong Kong’s stock market dropped 13.2% on April 7, its worst day in nearly 30 years. Tokyo closed down almost 8%, while Frankfurt fell up to 10% in early trading before recovering some losses.
Wall Street saw major swings. The market briefly moved into positive territory on hopes of a 90-day tariff pause, then fell when the White House denied those expectations.
Trillions of dollars disappeared from stock market valuations in recent days. Bitcoin also fell while the dollar rebounded after sharp losses last week.
Before Wall Street opened, Trump urged Americans to be “Strong, Courageous, and Patient” for “GREATNESS.”
JPMorgan Chase CEO Jamie Dimon warned in a letter to shareholders that the tariffs will likely increase inflation and slow growth.
Stephen Innes at SPI Asset Management said the market indicates global demand is vanishing and a global recession is coming quickly.
US Senator Ted Cruz, a Trump supporter, warned of job losses and rising inflation that could threaten Republican control of Congress.
Trump’s tariff policy extends beyond China. A 10% “baseline” tariff on US imports worldwide took effect on April 5. Higher duties will hit many countries from April 9, including 20% for European Union products and 10% for Singapore.
Singapore’s Deputy Prime Minister Gan Kim Yong said the city-state will not retaliate. Instead, Singapore will meet with US officials to address any concerns.
EU trade ministers met in Luxembourg on April 7 to discuss their response. French Trade Minister Laurent Saint-Martin said they should consider all options on goods and services.
Germany and France have suggested targeting US tech giants with taxes. Irish Trade Minister Simon Harris expressed concern, saying targeting services “would be an extraordinary escalation.”
Israeli Prime Minister Benjamin Netanyahu, whose country faces 17% tariffs despite being a close US ally, was scheduled to be the first leader to meet with Trump since the tariff announcement.
