Trump Threatens China With More 50% Tariffs Amid Market Slide/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump threatened to impose additional tariffs on China as global markets continued to slide, deepening fears of a trade war. Trump’s move comes after Beijing retaliated against last week’s U.S. tariffs, and the president warned talks with China may be terminated. Wall Street plunged on the news, and concerns of a recession intensified.
Trump Escalates Trade War With China: Quick Looks
- Trump threatens 50% tariffs on China if it doesn’t reverse its retaliatory move by April 8.
- Dow drops 1,200 points; S&P 500 approaches bear market territory.
- Trump defends tariffs as key to “rebalancing global trade.”
- Goldman Sachs warns recession risk rising, even if tariffs are lifted.
- European Union pivots away from U.S. trade due to tariffs.
- Japan expresses “national crisis” concern over Trump’s trade policy.
- Elon Musk and Bill Ackman criticize tariffs; White House pushes back.
- Trump to meet Netanyahu after Dodgers White House visit Monday.
- Fed under pressure to cut rates amid economic instability.
Trump Threatens China With More 50% Tariffs Amid Market Slide
Deep Look
Trump Doubles Down on China With Threat of More Tariffs as Markets Reel
President Donald Trump escalated his trade war rhetoric Monday, threatening to impose an additional 50% tariff on Chinese imports if Beijing does not back down from its own retaliatory measures. The warning, delivered via his Truth Social platform, stoked fresh anxiety across global markets, which have been in freefall since the White House’s initial tariff rollout last week.
“If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump wrote. He added that all trade discussions with China would be canceled if the retaliation stands.
The move comes just days after China announced countermeasures in response to sweeping U.S. tariffs that have impacted dozens of countries. While Trump has framed the tariffs as a necessary corrective to “decades of unfair trade,” economists warn the policy risks triggering a deep recession.
“Be Strong, Courageous, and Patient, and GREATNESS will be the result!” Trump posted, urging Americans to endure short-term economic pain.
Wall Street Reacts With Steep Decline
Markets immediately responded to the threat. The Dow Jones Industrial Average plunged by 1,200 points early Monday, and the S&P 500 is now teetering on the edge of a bear market, down nearly 20% from recent highs. Tech stocks and consumer sectors were particularly hard hit, as fears mounted over reduced global demand and supply chain disruptions.
Goldman Sachs released a sobering forecast, warning that even a reversal in tariff policy might not stave off economic downturn. The firm cited “sharp tightening in financial conditions, foreign consumer boycotts, and a continued spike in policy uncertainty” as key risks to U.S. economic health.
Federal Reserve Faces Pressure
With inflation already elevated, the Federal Reserve finds itself in a precarious position. Chair Jerome Powell said Friday that while the Fed is monitoring the situation closely, it is not yet ready to act. Still, market expectations suggest at least four rate cuts by year-end, signaling growing concern that a recession could be unavoidable without policy easing.
International Allies Voice Concern
U.S. allies are increasingly voicing alarm. European Commission President Ursula von der Leyen stated that the EU would redirect its trade efforts toward other partners, calling the global economic landscape “full of opportunity beyond the United States.”
Japanese Prime Minister Shigeru Ishiba, after a call with Trump, said he was “strongly concerned” about the tariffs’ effect on Japanese investment in the U.S., calling it a “national crisis.” Japan has been the largest foreign investor in the United States for five consecutive years.
Trump, however, remained critical of Japan, saying, “They don’t take our cars, but we take MILLIONS of theirs.”
Domestic Tensions Over Tariff Policy
Within the U.S., criticism is growing — even from within Trump’s inner economic circles. Billionaire hedge fund manager Bill Ackman lambasted Commerce Secretary Howard Lutnick, accusing him of being “indifferent to the economy crashing.” Ackman also pointed out that Lutnick’s former firm, Cantor Fitzgerald, could benefit from a downturn due to its bond holdings.
Ackman later apologized for his tone but not his substance. “I am just frustrated watching what I believe to be a major policy error,” he wrote on X. “Our recent economic momentum is now at risk due to the tariffs.”
Trump’s top economic adviser Kevin Hassett brushed off the concerns. “Ackman needs to ease off the rhetoric,” he told Fox News, asserting that “other countries, not the U.S., will bear the brunt of these tariffs.”
Musk Joins Growing Dissent
Elon Musk, another high-profile voice in Trump’s administration, also expressed concern over the tariffs. Musk, who leads both Tesla and Trump’s federal efficiency initiative, said higher import taxes would hurt American businesses and consumers alike.
“Ideally, we should be working toward zero tariffs between Europe and North America,” Musk said in a video call with Italian lawmakers. “That’s been my advice to the president.”
Peter Navarro, Trump’s senior trade adviser, rejected Musk’s comments, saying, “He sells cars. He’s protecting his own interests like any businessperson would.”
A Packed White House Agenda
Trump’s Monday schedule included a ceremonial visit with the Los Angeles Dodgers to celebrate their World Series victory. He also hosted Israeli Prime Minister Benjamin Netanyahu for talks expected to center on tariffs, the Gaza conflict, and regional diplomacy with Saudi Arabia.
The meetings come amid growing scrutiny of Trump’s international and economic agenda, with the market downturn testing his efforts to maintain unity among a diverse coalition of supporters.
As pressure mounts, both economically and diplomatically, the White House shows no sign of backing away from its hardline trade strategy.
Whether Trump’s gamble will lead to favorable trade deals or plunge the global economy into a deeper downturn remains uncertain — but the stakes continue to rise.
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