In the latest development of the US-China trade war, President Donald Trump has threatened to impose an additional 50% tariff on Chinese goods unless China withdraws its 34% counter-tariff, which was introduced in retaliation to Trump’s global tariff measures. Trump had previously set a 34% tax on Chinese imports as part of his “Liberation Day” policy, which also imposed a minimum 10% levy on most US trading partners. The new tariffs could lead to a combined rate of 104% on Chinese goods, compounding existing tariffs, and potentially devastating US companies relying on Chinese imports.
Trump’s threat comes amidst a global market downturn, with stock markets in Asia and Europe facing sharp declines. China’s response to the new tariffs was one of strong opposition, with its commerce ministry condemning the US move as “economic bullying.” Beijing warned that it would not accept such threats, highlighting concerns over unilateral actions that undermine international trade norms.
In response, Trump doubled down, rejecting the idea of pausing tariffs for negotiations and maintaining that the US would push for “fair” trade deals. Other countries, including Israel and the European Union, have started sending negotiation teams, with the EU offering a “zero-for-zero tariff” proposal. However, Trump’s aggressive stance signals a continued focus on “America First” policies, despite growing fears of a global recession.
