Tensions flared on Monday in the U.S. President Donald Trump escalated his tariff battle with China, threatening a 50% levy on Chinese imports if Beijing does not retract its newly imposed 34% counter-tariff. The warning, issued via Trump’s Truth Social post, comes just days after his “Liberation Day” policy slapped a 34% tax on Chinese goods and at least 10% on other trading partners.
Beijing retaliated on Sunday, prompting Trump to issue a Tuesday deadline for China to reverse its stance — or face the most aggressive trade tariff in U.S. history.
The Chinese embassy in Washington condemned the move, accusing the U.S. of “economic bullying” and pledging to “firmly safeguard” its interests. Should Trump act on his threat, some Chinese imports would face a staggering 104% tariff when combined with earlier levies from March and last week.
Markets around the world continued to slide on fears of a full-scale trade war between the globe’s two largest economies. Trump further heightened tensions by announcing that ongoing trade talks with China were suspended indefinitely and dismissed the idea of pausing tariffs to allow negotiation.
Analysts warn that a deeper economic rift could have far-reaching implications for global trade and market stability.
