US President Donald Trump has escalated tensions in the ongoing trade dispute with China, threatening to impose an additional 50% tariff on Chinese goods.
This move would more than double the total levies on products, pushing them beyond the value of the goods themselves.
President Trump’s statement, posted on Truth Social on Monday, warned that if China does not withdraw its 34% tariff increase by April 8, 2025, the US would implement a 50% tariff starting on April 9, 2025.
The President also confirmed that the US would halt any further negotiations with Beijing regarding tariffs.
The proposed 50% additional tariff would bring the total levies on Chinese imports to an unprecedented 104%, far exceeding the value of the goods.
This could have significant consequences for US consumers who rely on Chinese imports for everyday products, potentially raising prices across a broad range of goods.
President Trump’s threat follows China’s decision to impose a 34% tariff on US imports, mirroring the levy that US President Trump had previously announced in retaliation.
The continued escalation of reciprocal tariffs has raised concerns about the global economic impact, with many fearing that the standoff could lead to a protracted trade war.
US President Trump dismissed the possibility of pausing the reciprocal tariffs, telling reporters, “We’re not looking at that.”
In a separate comment after meeting Israeli Prime Minister Benjamin Netanyahu, the US President noted that he was prepared to endure the negative effects of the tariffs, expressing optimism about the long-term outcome.
“I don’t mind going through it because I see a beautiful picture at the end,” US President Trump said.
The US stock markets showed mixed reactions following the tariff announcements.
While the NASDAQ experienced a slight gain of 0.1% on Monday, the broader S&P 500 Index dropped by 0.23%.
The market briefly rallied, rising 3.4%, on rumors of a potential 90-day pause in the reciprocal tariffs, but those hopes were dashed when the White House quickly denied the speculation.
Despite the market volatility, President Trump expressed confidence in the US’s trade strategy, stating that he had made significant progress with various countries.
He pointed out that nations that had previously taken advantage of the US were now requesting negotiations.
As the tariff dispute intensifies, other countries have weighed in with potential solutions.
Following a phone conversation with Japanese Prime Minister Shigeru Ishiba, President Trump announced that Japan would send a delegation to the US for trade negotiations.
In a related development, US Secretary of State Marco Rubio spoke with India’s External Affairs Minister S Jaishankar to discuss reciprocal tariffs between the two nations and explore ways to build a more balanced trade relationship.
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