Trump warns of imposing extra 50% tariffs on China in response to their retaliatory taxes.

Donald Trump has issued a warning that he will implement an additional 50% tariff on imports from China if the country does not revoke its retaliatory tariffs against the United States by Tuesday.

This announcement comes on the heels of significant global market declines that have persisted for three days since Trump initiated his trade conflict last Wednesday by imposing tariffs on the US’s trading partners.

As part of this strategy, the White House declared a 34% tariff on Chinese imports, prompting Beijing to respond with a matching 34% tariff on US goods.

In a statement posted on Truth Social on Monday morning, the US president remarked that China proceeded with its retaliatory tariffs despite his prior warning that any country retaliating against the US with additional tariffs would face “new and substantially higher Tariffs, over and above those initially set.”

Trump said, “If China does not retract its 34% increase, which is already a result of their long-standing trade abuses, by tomorrow, April 8th, 2025, the United States will impose extra Tariffs on China of 50%, effective April 9th.”

He further declared, “Moreover, all discussions with China regarding their requests for meetings will be canceled! Negotiations with other nations that have also sought meetings will commence immediately.”

In response, China’s embassy in the US asserted on Monday that it would not yield to pressure or threats regarding the proposed 50% tariffs. 

Liu Pengyu, a spokesperson for the embassy, told Agence France-Presse, “We have emphasized repeatedly that pressuring or threatening China is not the appropriate way to engage with us. China will firmly protect its legitimate rights and interests.”

Why is china responding to the tariffs?

China reacted to the initial round of Trump tariffs by imposing its own tariffs on select US imports, implementing export controls on rare metals, and launching an anti-monopoly investigation into American companies like Google. In this latest round, China has not only announced retaliatory tariffs but is also preparing for potential economic strain by allowing the yuan to weaken, making its exports more competitive. 

Additionally, state-owned enterprises have been purchasing stocks to help stabilize the market. 

Meanwhile, the possibility of negotiations between the US and Japan has given some hope to investors looking to recover from recent ‘ losses. ‘

However, the ongoing conflict between China and the US, the largest exporter and its key market, continues to raise significant concerns. Mary Lovely, a trade expert, noted that the situation has shifted to a contest of endurance rather than seeking mutual benefits, suggesting that China may be willing to endure economic hardship to resist what it perceives as US aggression. 

The Chinese economy is already facing challenges, including a struggling property market and rising unemployment, which have led to decreased consumer spending. Local governments, burdened by debt, are also finding it difficult to boost investments or enhance social safety nets.

Andrew Collier from Harvard Kennedy School pointed out that the tariffs worsen these existing issues, as a decline in exports could severely impact a vital revenue source for China. Although the country is attempting to diversify its economy, exports remain a crucial element of its growth. Collier warns that the effects of the tariffs will likely be felt soon, placing President Xi in a tough position amid a slowing economy.