The ultimatum, posted on Truth Social, demands that China reverse its “34% increase above their already long-term trading abuses” by April 8, 2025, or face steep new duties effective the following day.
“If China does not withdraw… the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump declared. He added that all discussions with Chinese officials would be cancelled if the country fails to comply. “Additionally, all talks with China concerning their requested meetings with us will be terminated!” he wrote.
The warning comes as global markets continue to reel from rising trade tensions and recession fears. Despite the rout, Trump remained defiant, urging supporters to stay the course: “Be Strong, Courageous, and Patient, and GREATNESS will be the result!”
The Dow Jones tumbled 800 points and the S&P 500 edged closer to bear market territory after Donald Trump threatened to impose higher tariffs on China.
Global equities plunged on Monday as investors fled to safe-haven assets, rattled by deepening tensions between the US and China. The selloff intensified after Beijing imposed 34% retaliatory tariffs on all US imports over the weekend, prompting fears of an escalating trade war.
Markets across Asia—from Sydney to Tokyo—opened sharply lower, dragging down commodities like oil and copper.
In India, the Nifty 50 staged a sharp intraday rebound on Monday, April 7, but still ended the session 743 points lower—a tough day for the bulls despite the late recovery.
The index clawed back nearly 500 points from its lows to close at the day’s high, offering a sliver of relief. Notably, it managed to end above the crucial March 4 low of 21,964, despite breaching it during the session, hinting at some resilience in the face of heavy selling.
The escalating rhetoric has stoked investor anxiety, with concerns mounting that the standoff could trigger a deeper downturn in both the US and global economies. Beijing has yet to issue an official response to Trump’s latest comments.
This is over and above a 10 per cent global tariff, which the White House has said, applies to all nations worldwide, taking China’s tally of Trump’s tariffs to a staggering 94 per cent. Though President Trump gave China’s Xi Jinping a 24-hour window of opportunity to roll-back or “withdraw” the additional tariff he has imposed against the US, failing which, Chinese goods will face this revised 94 per cent tariff in total.
President Trump made the announcement at around 11:30 am (US time – 9 pm India time). Citing his earlier “warning” to “tariff abuser” China, he shared a post on his social media platform Truth Social, in which he wrote, “Yesterday, China issued retaliatory tariffs of 34 per cent, on top of their already record setting tariffs, non-monetary tariffs, illegal subsidization of companies, and massive long term currency manipulation, despite my warning that any country that retaliates against the US by issuing additional tariffs, above and beyond their already existing long term tariff abuse of our nation, will be immediately met with new and substantially higher tariffs, over and above those initially set.”
