Trump’s 50% China tariff ultimatum: US President Donald Trump has threatened to impose additional tariffs on China, significantly escalating trade tensions between the two nations. Amidst declining global markets, the US president threatened China with an additional 50% tariff on its goods if it doesn’t retract its 34% retaliatory tariff, which followed the US’s ‘Liberation Day’ imposition of a 34% tax on Chinese imports and a minimum 10% levy on most trading partners. China responded with countermeasures on Sunday.
US-China trade war: Potential 104% tariffs
If President Trump acts on his threat, US companies could face a total tariff rate of 104% on Chinese imports. This total includes the 20% tariffs already in place since March, and the 34% from last week.This figure is a combination of previous tariffs, including those related to fentanyl trafficking, and the newly proposed increases.
This development raises fears of a deepening trade war between the world’s two biggest economies and global rivals.
The US-China trade war involved a tit-for-tat escalation of tariffs between two major economies.
In a social media post on Monday, Trump gave China until Tuesday to scrap its countermeasure or face the 50% tax. “Yesterday, China issued Retaliatory Tariffs of 34%, 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% 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. 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 your attention to this matter!,” read his post.
“We have massive Financial Deficits with China, the European Union, and many others. The only way this problem can be cured is with TARIFFS, which are now bringing Tens of Billions of Dollars into the U.S.A. They are already in effect, and a beautiful thing to behold. The Surplus with these Countries has grown during the “Presidency” of Sleepy Joe Biden. We are going to reverse it, and reverse it QUICKLY. Some day people will realize that Tariffs, for the United States of America, are a very beautiful thing!,” Trump posted on his Truth Social handle.
In the wake of President Trump’s order for reciprocal tariffs, global stock markets and oil prices have experienced a dramatic free fall over the last three days
Trump tariffs trigger global market turmoil
The imposition and threats of tariffs by the United States have undeniably sent shockwaves through global markets, leading to significant instability and apprehension. The uncertainty surrounding trade policies has caused significant fluctuations in global stock markets. Investors react sharply to tariff announcements, leading to declines in major indices worldwide. This volatility stems from fears of disrupted supply chains, reduced trade, and potential economic slowdowns.
Trump tariffs: Impact on Indian stock market
As the world’s two largest economies (the U.S. and China) engaged in a trade war, emerging markets, including India, were not immune to the impact. The BSE and Nifty saw increased volatility due to the spillover effects of the U.S.-China trade tensions.
The IT sector in India, especially companies like TCS and Infosys, are closely tied to the global economy and slowdown could negatively impact these companies’ revenues and stock performance.
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Donald Trump reciprocal tariffs hit India, global trade faces turmoil