In a dramatic escalation of trade tensions, former President Donald Trump has warned China he will impose a staggering 50% tariff on all imported Chinese goods unless Beijing cancels its planned 34% retaliatory tariffs on U.S. products set to take effect this Thursday.
The threat comes just days after Trump shocked global markets by announcing sweeping new “reciprocal” tariffs on over 180 countries, including a 20% levy on the EU and 26% on India.
Financial markets have been in turmoil since last week’s “Liberation Day” tariff announcement, with analysts warning of spiraling inflation and recession risks. Trump remained defiant as stocks tumbled, posting on Truth Social: “Don’t be Weak! Don’t be Stupid!” while falsely claiming “there is NO INFLATION.”
The former president compared his aggressive trade policy to medical treatment, telling reporters: “Sometimes you have to take medicine to fix something.”
The situation turned even more volatile Monday when markets briefly rallied on rumors of a potential 90-day tariff pause – only to crash again when the White House denied the reports.
Behind the scenes, frantic negotiations are underway, with Israel’s Netanyahu rushing to Washington and the EU proposing a “zero-for-zero” tariff deal on industrial goods.
With global supply chains now facing unprecedented disruption and retaliatory measures multiplying by the hour, economists warn the world may be entering its most dangerous trade war since the 1930s.
The China threat specifically targets $550 billion in annual trade, potentially triggering the biggest economic confrontation between the superpowers in history.
