Trump threatens more tariffs on China if Beijing does not withdraw retaliatory measures, increasing trade war concerns, reports AP.
In a bold move, President Donald Trump has issued an ultimatum to China, threatening to impose an additional tariff of 50 per cent on Chinese imports if Beijing does not rescind its recently announced 34% tariff increase. The new tariffs, which China plans to implement in retaliation for U.S. tariffs, are set to take effect on April 9. Trump made the announcement on Truth Social, where he also declared that all talks with China regarding requested meetings would be terminated if China fails to withdraw its new tariff measures.
This threat marks the latest escalation in the ongoing trade war between the U.S. and China. Earlier, China imposed a 34% tariff on U.S. goods in response to Trump’s tariffs on Chinese imports, which had already triggered retaliatory measures from Beijing, including export controls on rare earth minerals and a lawsuit at the World Trade Organization. China also suspended imports from several U.S. companies and added more U.S. firms to its trade restriction lists.
In his post, Trump also warned other countries contemplating retaliatory tariffs against the U.S., stating that any nation taking such actions would immediately face new and substantially higher tariffs. He reiterated his previous stance on what he calls the “long-term tariff abuse” by other nations, particularly China, which he claims has been taking advantage of the U.S. for decades.
Trump further defended his administration’s tariff policies, arguing that the U.S. is benefiting from the current trade measures. He pointed to the decline in oil prices, lower interest rates, and reduced food prices as signs of economic progress, despite the escalating trade tensions. “There is NO INFLATION,” Trump declared while emphasizing that the U.S. is bringing in billions of dollars every week from the tariffs already in place.
Despite the heightened tensions, Trump suggested that negotiations with other countries could still move forward, hinting at potential discussions with nations affected by the tariffs. “Negotiations with other countries will begin taking place immediately,” he stated, positioning the U.S. as a stronger player on the global economic stage.
The trade war with China has intensified since Trump imposed tariffs in February and March, citing concerns over China’s role in the fentanyl crisis and unfair trade practices. While Trump has previously signalled his willingness to negotiate, his recent comments and actions suggest a hardline approach to China’s growing trade aggression.
China’s response to the tariffs has been swift and forceful, with Beijing taking a firmer stance than during previous rounds of tariff increases. Experts warn that the ongoing escalation is making it increasingly difficult for both sides to de-escalate without losing face, and a resolution to the trade dispute appears further out of reach.
As the two economic giants continue their battle, global markets remain volatile, and businesses are left grappling with the uncertainties created by the trade conflict. The looming threat of even higher tariffs from both sides signals a protracted period of tension, with no clear path to reconciliation in sight.
With both countries dug in, the prospects for a peaceful resolution seem increasingly uncertain, and the stakes for global trade continue to rise.
