US President Donald Trump fired back at China’s 34% retaliatory tariffs, threatening Monday to slap an additional 50% duty on Chinese goods if Beijing doesn’t back down by Tuesday.
In a fiery Truth Social post, Trump gave China a 24-hour ultimatum, warning that failure to withdraw its tariffs would push total US tariffs on China to 104%, including existing 10% global duties. He also vowed to cut off all talks with Beijing while opening negotiations with other nations yet to retaliate.
China stood firm, declaring it won’t bow to pressure. Beijing’s Commerce Ministry called Trump’s move “blackmail” and warned that threats won’t force dialogue. “China will fight to the end,” a spokesperson said, hinting at further countermeasures to protect its interests.
Escalating US-China trade war sent shockwaves through global markets. Wall Street saw sharp declines: Dow Jones dropped nearly 5.5%, S&P 500 fell 6%, and Nasdaq slid over 5.5%. Europe followed suit—UK’s FTSE shed over 5%, Germany’s DAX crashed 7%. In Asia, Japan’s Nikkei lost 5.5%, Hong Kong’s Hang Seng plummeted 12%, and Taiwan’s markets fell 8-10%. BBC reports suggest Trump’s dismissal of market turmoil fueled the ongoing sell-off.
Commodity prices tanked too. Fuel oil, natural gas, soybeans, and gold dipped as trade fears gripped investors. Shares of HSBC and Standard Chartered also took hits amid the chaos.
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Trump’s tariff push, part of his “reciprocal trade” strategy, aims to rebalance decades of perceived US losses. Critics warn it risks recession, while supporters see it as leverage. With China defiant and markets reeling, Wednesday’s deadline looms large.
