The US is on the brink of a significant tariff escalation with China, as President Trump threatened to impose an additional 50 per cent tariff hike unless China withdraws its retaliatory 34 percent increase.
This move is part of a broader trade policy overhaul, which already includes a comprehensive tariff package announced on April 2, 2025. The existing tariffs on Chinese imports have been raised to 54 percent, with the new reciprocal tariffs set to take effect on April 9, 2025.
Meanwhile, global markets are feeling the impact as the Dow Jones Industrial Average dropped 1,200 points when trading began on Monday morning, and the S&P 500 was on track to enter a bear market, which means falling 20 percent from a recent high. Oil prices are extending last week’s losses due to growing fears of a global recession. China’s retaliatory tariffs and OPEC+’s planned production increase are contributing to the downward pressure.
Even some of Trump’s allies are raising alarms about the economic damage, and financial forecasts suggested more pain on the horizon for U.S. businesses, consumers, and investors.
Trump aims to address perceived trade imbalances and bolster domestic industries through these measures.
However, critics warn of potential inflationary pressures and disruptions to international trade. China’s Ministry of Finance has already responded with counter-tariffs on key US agricultural goods, such as chicken, wheat, corn, and cotton, sparking concerns about escalating trade tensions.
Trump’s threat, which he delivered on social media, came after China said it would retaliate against U.S. tariffs announced last week.
The US President took to his official X (formerly Twitter) handle and warned that additional tariffs of 50 percent will be imposed on China effective April 9.
“Yesterday, China issued Retaliatory Tariffs of 34 percent, on top of their already record-setting Tariffs, Non-Monetary Tariffs, Illegal Subsidization of companies, and massive long-term Currency Manipulation, despite my warning that any country that Retaliates against the U.S. by issuing additional Tariffs, above and beyond their already existing long-term Tariff abuse of our Nation, will be immediately met with new and substantially higher Tariffs, over and above those initially set.
Therefore, if China does not withdraw its 34 percent increase above their already long-term trading abuses by tomorrow, April 8, 2025, the United States will impose ADDITIONAL Tariffs on China of 50 percent, effective April 9. Additionally, all talks with China concerning their requested meetings with us will be terminated! Negotiations with other countries, which have also requested meetings, will begin taking place immediately. Thank you for our attention to this matter,“ Trump wrote.
In another tweet, he observed that oil prices are down, interest rates are down (the slow-moving Fed should cut rates!), food prices are down, and there is NO INFLATION.
According to him, the long-time abused USA is bringing in billions of dollars a week from the abusing countries on tariffs that are already in place.
“This is despite the fact that the biggest abuser of them all, China, whose markets are crashing, just raised its tariffs by 34 percent, on top of its long-term ridiculously high tariffs (Plus!), not acknowledging my warning for abusing countries not to retaliate.
“They’ve made enough, for decades, taking advantage of the Good OL’ USA! Our past “leaders” are to blame for allowing this, and so much else, to happen to our Country. MAKE AMERICA GREAT AGAIN!,” Trump emphasises.
Analysts warn that escalating trade disputes could lead to industrial slowdowns and further depress oil consumption, potentially pushing prices even lower.
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