Trade tensions further escalated on Monday as U.S. President Donald Trump threatened to slap an additional 50% tariff on Chinese imports if Beijing fails to reverse its newly announced retaliatory tariffs on American goods.
Trump issued the warning via a social media post on Monday morning, condemning China’s move to impose a 34% tariff increase as a response to earlier U.S. trade actions. He described Beijing’s decision as “unacceptable” and accused the Chinese government of disregarding a prior warning not to retaliate.
“If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9,” Trump posted on Truth Social.
The 50% proposed tariff would be in addition to a 34% duty set to begin on Wednesday, as well as a 20% penalty tied to fentanyl trafficking concerns, potentially raising the effective tariff rate to an unprecedented 104%.
The White House defended the move, saying the administration is determined to hold China accountable for what it describes as decades of unfair trade practices — including intellectual property theft, currency manipulation, and forced technology transfers.
China’s Ministry of Commerce, however, criticized Trump’s threat as “economic intimidation” and warned that Beijing is prepared to take “necessary countermeasures” to protect its national interests. The ministry accused the U.S. of undermining global trade rules and disrupting economic stability.
The latest developments have roiled financial markets. The Dow Jones Industrial Average dropped over 1,300 points in early trading before recovering slightly. It eventually closed down 349 points, or 0.9%, at 37,966. The S&P 500 dipped 0.2% and briefly entered bear market territory during the day, reflecting growing investor anxiety over the potential for a prolonged trade war.
Global economic analysts have expressed concern that the standoff between the world’s two largest economies could disrupt supply chains, raise consumer prices, and slow down global growth. With the April 8 deadline fast approaching, all eyes are now on Beijing’s next move — and how Washington might respond.
