President Donald Trump has warned China to cancel its 34% tariff on American goods or face a 50% import tax starting Tuesday. This move could trigger a new wave in the ongoing trade war.
On Monday, Trump set a firm deadline. He demanded that China cancel its counter-tariffs by the next day. If not, he promised to apply an extra 50% tax on Chinese imports. These new duties would be added on top of existing penalties.
Trump’s latest action follows China’s response to his earlier move—a 34% tariff on Chinese goods. That decision was announced during his “Liberation Day” speech, which also introduced a 10% tariff minimum on nearly all US trade partners.
China Rejects Demand, Cites Economic Coercion
The Chinese embassy in Washington quickly responded. Officials called the move “economic coercion” and said China would defend its rights.
A spokesperson criticized the US decision. He said it showed “selfish protectionism” and ignored fair trade values. China warned that threats and pressure are not the way to resolve issues between global powers.
Beijing has insisted that it will act to protect its key industries. Officials called the United States’ approach one-sided and harmful to global trade.
Trade Tensions Shake Global Markets
If Trump adds the new 50% tariff, total US duties on Chinese goods could reach 104%. This figure includes a 20% tariff from March and the 34% rise last week.
The announcement caused panic in global stock markets. On Monday, major US stock indexes dropped sharply. The S&P 500 fell more than 4%. In Europe, the FTSE 100 and Germany’s DAX saw similar declines.
In Asia, Hong Kong’s Hang Seng index plunged 13%. This marked its worst day since 1997. Japan’s Nikkei also dropped. Some Asian markets recovered slightly by Tuesday morning, but uncertainty remains high.
US Refuses to Ease Global Tariffs
Trump made it clear that the US would not pause its trade actions. He said that many countries are now asking for fair trade deals, but the US will continue to protect its interests.
“There will be no pause,” he told reporters on Monday. “It’s America first now.”
He added that the US national debt—now over $36 trillion—was a major reason for taking tougher trade steps.
Chinese and US Exports at Risk
The proposed tariffs could hit major industries in both countries. China’s biggest exports to the US include:
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Electronics
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Vehicles
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Furniture
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Toys
On the other side, US exports to China include:
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Soybeans and other crops
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Aircraft
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Industrial machines
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Pharmaceuticals
These sectors are likely to feel the effects if the trade fight grows worse. Business leaders are already warning of supply disruptions and rising costs.
US Allies Begin Trade Talks
While the US confronts China, other countries are also facing new tariffs. On Monday, Israeli Prime Minister Benjamin Netanyahu visited the White House. He agreed to reduce trade barriers and address the trade imbalance with the US.
Starting April 9, Israel will face a 17% import tariff under Trump’s new trade plan.
Japan has also sent a team to begin talks in Washington. Trump said he expects quick progress. At the same time, European Commission President Ursula von der Leyen proposed a “zero-for-zero tariff” deal, offering to remove EU tariffs if the US does the same.
Still, she warned that the EU might take its own countermeasures if needed.
What Comes Next in the Trade Battle?
Trump has signaled that this is only the start of a larger plan to change global trade rules. He told reporters that the European Union’s original purpose was to hurt US trade. He promised firm steps to reshape the global economy in America’s favor.
For now, all eyes are on whether China will back down or escalate. With stock markets already shaken, the world could soon feel the full impact of the growing trade war.