Trump Threatens Additional 50% Tariff on China, Escalating Trade Tensions
President Donald Trump has warned China that the US will impose an additional 50% tariff on Chinese imports if Beijing doesn’t withdraw its retaliatory tariffs by April 8, 2025. This move is part of an ongoing trade dispute between the two countries, with Trump’s administration seeking to rebalance global trade and rebuild domestic manufacturing.¹
Key Points
- Tariff Increase: Trump announced that if China doesn’t withdraw its 34% increase in tariffs, the US will impose an additional 50% tariff, effective April 9, 2025.
- Trade Dispute Escalation: The trade tensions between the US and China have raised concerns about a potential global economic slowdown.
- Global Economic Impact: The trade dispute has led to a sharp selloff in various markets, with ICE Brent crude futures dropping by over $10/bl since Wednesday’s close.
Reactions
- Business Leaders: Some business leaders, like Bill Ackman, have expressed concerns about the potential consequences of the trade dispute, including a halt in business investment and consumer spending.
- Supporters: On the other hand, some Trump supporters have praised his stance on trade, arguing that it’s necessary to protect American interests.
Impact on Global Economy
- Economic Slowdown: The trade dispute has raised concerns about a potential global economic slowdown.
- Market Volatility: The announcements around tariff rates have triggered a sharp selloff in various markets.
- Recession Fears: Some experts have warned that the trade dispute could lead to a recession, with Goldman Sachs issuing a forecast suggesting a recession has become more likely.²
