Trump Threatens 50% Tariff on China Amid Trade Tensions
President Trump announced a potential 50% tariff on Chinese goods if retaliatory tariffs are not withdrawn by April 9, 2025. This escalation in the U.S.–China trade conflict was communicated via Truth Social. He criticized China's 34% tariff increase as a long-term trading abuse.
Trump dismissed any pause in tariff actions, emphasizing that negotiations must be “fair.” The administration is reportedly engaging with officials from over 50 countries for new trade deals.
China condemned the tariff threat, labeling it as unilateralism and economic bullying. The Chinese embassy warned against using threats as a negotiation tactic.
Market reactions included:
- The S&P 500 index closed down 0.2%.
- Apple shares fell 3.7% due to supply chain concerns.
- The Nasdaq Composite saw a slight increase of 0.1%.
Investor Ray Dalio urged attention to broader trends beyond tariffs, identifying them as part of a larger breakdown in global order. Key issues highlighted include:
- Unsustainable debt levels
- Domestic political fragmentation
- Geopolitical realignment
- Environmental disruptions
- Technological revolutions
Dalio warned that focusing solely on tariff announcements overlooks significant systemic changes. He concluded that current trade tensions could lead to profound shifts in the global economy.