Trump Threatens Additional Tariffs on China

President Donald Trump threatened additional tariffs on China on Monday, raising fresh concerns that his drive to rebalance the global economy could lead to a trade war.

Trump’s threat, which he delivered on social media, came after China said it would retaliate against U.S. tariffs announced last week.

“If China does not withdraw its 34 per cent increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50 per cent, effective April 9th,” he wrote on Truth Social. “Additionally, all talks with China concerning their requested meetings with us will be terminated!

Trump has remained defiant as the stock market continued plunging and fears of a recession grew.

“Be Strong, Courageous, and Patient, and GREATNESS will be the result!” he wrote.

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Market Reaction

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China strikes back as stocks slide after worst day since 2020

The Dow Jones Industrial Average dropped 1,200 points as trading began on Monday morning, and the S&P 500 was on track to enter a bear market, which means falling 20 per cent from a recent high. Even some of Trump’s allies are raising alarms about the economic damage, and financial forecasts suggest more pain on the horizon for U.S. businesses, consumers and investors.

The Republican president has insisted his tariffs are necessary to rebalance global trade and rebuild domestic manufacturing. He accused other countries of “taking advantage of the Good OL’ USA!” on international trade and said “our past ‘leaders’ are to blame for allowing this.” He singled out China as “the biggest abuser of them all” and criticized Beijing for increasing its own tariffs in retaliation.

Trump also called on the Federal Reserve to lower interest rates. On Friday, Federal Reserve Chair Jerome Powell warned that the tariffs could increase inflation, and he said “there’s a lot of waiting and seeing going on, including by us,” before any decisions would be made.

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Economic Impact

Investors expect the U.S. central bank to cut its benchmark interest rates at least four times by the end of this year, according to CME Group’s FedWatch, a sign that concerns about inflation will be eclipsed by fears of layoffs and a shrinking economy.

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Trump’s Weekend

Trump spent the weekend in Florida, arriving on Thursday night to attend a Saudi-funded tournament at his Miami golf course. He stayed at Mar-a-Lago, his private club in Palm Beach, and golfed at two of his properties nearby.

On Sunday, he posted a video of himself hitting a drive, and he told reporters aboard Air Force One that evening that he won a club championship.

“It’s good to win,” Trump said. “You heard I won, right?”

He also said that he wouldn’t back down from his tariffs despite the turmoil in the global markets.

“Sometimes you have to take medicine to fix something,” Trump said.

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China to impose counter-tariffs on all U.S. goods

Goldman Sachs issued a new forecast saying a recession has become more likely even if Trump backtracks from his tariffs. The financial firm said economic growth would slow dramatically “following a sharp tightening in financial conditions, foreign consumer boycotts, and a continued spike in policy uncertainty that is likely to depress capital spending by more than we had previously assumed.”

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International Reaction

European Commission President Ursula von der Leyen said the European Union would focus on trade with other countries besides the United States, saying there are “vast opportunities” elsewhere.

Trump said he spoke with Japanese Prime Minister Shigeru Ishiba to start trade negotiations. He complained on Truth Social “they have treated the U.S. very poorly on Trade” and “they don’t take our cars, but we take MILLIONS of theirs.”

White House Reaction

White House trade adviser Peter Navarro suggested countries would need to do much more than simply lower their own tariff rates to reach deals, saying they would have to make structural changes to their tax and regulatory codes.

“Let’s take Vietnam,” he said on CNBC. “When they come to us and say, ‘We’ll go to zero tariffs,’ that means nothing to