U.S. President Donald Trump has issued a fresh ultimatum to China, threatening to impose an additional 50% tariff on Chinese goods unless Beijing withdraws its recently announced 34% counter-tariff. The warning, delivered via social media on Monday, adds further strain to the growing trade war between the world’s two largest economies.
The tensions escalated after Trump’s “Liberation Day” initiative last week, which introduced a sweeping 34% import tax on Chinese goods and a baseline 10% tariff on nearly all foreign imports. China retaliated on Sunday with its own 34% levy, prompting Trump to give Beijing a 24-hour deadline to reverse the decision or face steeper penalties.
If enacted, the new 50% tariff would come on top of the 34% and a previous 20% levy implemented in March, pushing the total tariff burden on Chinese imports to 104%. Economists warn such measures could significantly deepen the trade conflict, disrupt global supply chains, and fuel recession fears.
China’s Ministry of Commerce condemned the move, describing it as “a mistake on top of a mistake,” and vowed not to succumb to U.S. “blackmail.” A spokesperson for the Chinese Embassy in Washington, Liu Pengyu, accused the U.S. of “economic bullying” and said the policy undermines international trade norms under the guise of reciprocity.
Despite growing international concern, Trump remained defiant. “All talks with China concerning their requested meetings with us [on tariffs] will be terminated!” he wrote on Truth Social. Speaking from the White House, he doubled down on his stance, stating that negotiations with other countries would proceed only under fair and reciprocal terms.
Trump also dismissed the possibility of pausing the global tariffs to allow for diplomatic engagement. “We’re not looking at that,” he said. “There are going to be fair deals.”
The trade standoff has sent shockwaves through global financial markets. U.S. indices opened sharply lower on Monday before partially recovering, while Europe’s major markets, including the FTSE 100, closed more than 4% down. In Asia, Hong Kong’s Hang Seng Index plunged over 13%—its biggest single-day drop since 1997. Losses continued into Tuesday in Taiwan, Singapore, Thailand, and Indonesia.
China, whose top exports to the U.S. include electronics, computers, and machinery, could be particularly hard-hit. U.S. exports to China, meanwhile, primarily consist of agricultural goods, aircraft, and pharmaceuticals.
Trump hinted that formal tariff negotiations with several countries are now underway. He met with Israeli Prime Minister Benjamin Netanyahu on Monday, who pledged to quickly address the U.S.-Israel trade imbalance. Japan is also sending a delegation for talks, while European Commission President Ursula von der Leyen has offered a “zero-for-zero” tariff deal—though she warned the EU is prepared to retaliate if needed.
As the dispute unfolds, global leaders and financial markets brace for more volatility in what is shaping up to be a defining moment in modern trade relations.
