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By Jenna Sundel and Gabe Whisnant
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On Monday, President Donald Trump escalated trade tensions by threatening to impose additional tariffs on China, reigniting fears that his push to reshape global trade could trigger a full-blown trade war. The warning, issued via social media, followed China's announcement that it would retaliate against the U.S. tariffs unveiled last week.
Trump wrote on Truth Social, "Yesterday, China issued Retaliatory Tariffs of 34%, 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 U.S. 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."
Why It Matters
As markets opened Monday, the Dow Jones Industrial Average tumbled 1,200 points, while the S&P 500 neared bear market territory, defined by a 20 percent drop from recent highs.
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Even some of Trump's allies are expressing concern over the economic fallout, with forecasts pointing to further strain for American businesses, consumers, and investors.
Trump has continued to defend his tariff strategy as essential for correcting trade imbalances and revitalizing U.S. manufacturing. He blamed past administrations for weak trade policies and accused other nations of exploiting the United States, calling China "the biggest abuser of them all" for retaliating with tariffs of its own.
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What To Know
Trump has remained defiant despite mounting fears of recession and a plunging stock market. "Be Strong, Courageous, and Patient, and GREATNESS will be the result!" the president wrote on Truth Social.
Trump said that if China does not withdraw the 34 percent increase by Tuesday, the U.S. will impose an additional 50 percent tariff starting Wednesday.
"Additionally, all talks with China concerning their requested meetings with us will be terminated! Negotiations with other countries, which have also requested meetings, will begin taking place immediately. Thank you for your attention to this matter!" Trump wrote.
If implemented, U.S. tariffs on imports from China would total 104 percent. This includes 20 percent tariffs announced as punishment for fentanyl trafficking and separate 34 percent tariffs announced last week.
What People Are Saying
President Donald Trump, on Truth Social: "We have massive Financial Deficits with China, the European Union, and many others. The only way this problem can be cured is with TARIFFS, which are now bringing Tens of Billions of Dollars into the U.S.A. They are already in effect, and a beautiful thing to behold."
Bill Ackman, CEO of hedge fund management company Pershing Square Capital Management, on X, formerly Twitter: "I am just frustrated watching what I believe to be a major policy error occur after our country and the president have been making huge economic progress that is now at risk due to the tariffs."
What Happens Next
It is unclear whether China will revoke the retaliatory tariffs by Trump's deadline. If Trump levies additional tariffs against China, it could raise prices for American consumers and incentivize China to focus on relations with other trade partners.
This article contains reporting by the Associated Press.
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Update 4/7/25, 1:27 p.m. ET: This article was updated with additional information.
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