Trump Threatens 50% Tariff on China as Trade War Escalates, Markets Plunge Globally

Tensions between the United States and China surged dramatically on Monday after President Donald Trump threatened to impose an additional 50% tariff on all Chinese imports unless Beijing withdraws its 34% counter-tariff by Tuesday.

The warning follows China’s retaliatory move on Sunday, which came in response to Trump’s latest “Liberation Day” policy — a sweeping protectionist measure that added a 34% tariff on Chinese goods and placed a minimum 10% levy on nearly all trading partners of the U.S.

Posting on his social media platform Truth Social, Trump stated:

“Any country that retaliates against the U.S. by issuing additional tariffs... will be immediately met with new and substantially higher tariffs.”

He further warned that “all talks with China concerning their requested meetings with us [on tariffs] will be terminated!”

In response, the Chinese embassy in Washington accused the U.S. of "economic bullying", vowing to "firmly safeguard its legitimate rights and interests." Chinese officials criticized the U.S. approach as unilateral, protectionist, and self-serving.

“Pressuring or threatening China is not a right way to engage,” said embassy spokesman Liu Pengyu.“This is a typical move of unilateralism and economic bullying in the name of ‘reciprocity’.”

If Trump's threat is carried out, Chinese goods entering the U.S. would face a total effective tariff rate of 104%, accounting for a 20% tariff introduced in March, last week’s 34%, and the new 50% proposal.

Global Markets in Freefall

The threat of escalating tariffs sent shockwaves through global financial markets.

• U.S. stock indices plummeted at Monday's opening, led by the S&P 500.

• European markets, including the FTSE 100, closed down more than 4%.

• In Asia, Hong Kong's Hang Seng Index dropped over 13%, marking its worst single-day fall since 1997.

• Markets began to stabilize slightly on Tuesday morning, with most Asian exchanges showing modest recoveries.

Investors are rattled by the possibility of a prolonged trade war between the world’s two largest economies. Economists warn that such a standoff could have widespread repercussions on global supply chains and economic growth.

Key Exports at Risk

China's main exports to the U.S. — including electronics, computers, furniture, vehicles, and toys — are expected to be hardest hit. Meanwhile, U.S. exports to China, such as oilseeds, aircraft, machinery, and pharmaceuticals, could also face mounting retaliation.

International Response & Diplomatic Push

The tariff standoff is also affecting America’s relationships with other key trading partners.

On Monday, Trump met with Israeli Prime Minister Benjamin Netanyahu at the White House. Netanyahu pledged to eliminate the trade imbalance with the U.S. and remove trade barriers, stating:

“We intend to do it very quickly.”

Israel, like many other U.S. allies, will be subject to a 17% tariff starting April 9 under Trump’s Liberation Day policy.

Japan is dispatching a negotiation team to Washington, and European Commission President Ursula von der Leyen has offered a “zero-for-zero” tariff deal. However, she has not ruled out countermeasures and said the EU is prepared to defend its interests.

“The EU was formed to really do damage to the United States and trade,” Trump said, reinforcing his tough stance.

No Pause in Global Tariffs

Despite the growing backlash, Trump confirmed that his administration is not considering a pause in global import tariffs to allow for negotiations.

“We’re not looking at that. We have many countries negotiating fair deals with us,” he told reporters.“It’s now America First.”

Trump also referenced the nation’s ballooning debt — now standing at $36 trillion — as a justification for the aggressive tariff policy.

As both Washington and Beijing dig in their heels, the world watches with rising concern, bracing for a potentially prolonged and damaging economic conflict.