Trump vows new 50% tariffs on China as markets plunge

United States President Donald Trump, on Monday, April 7, 2025, threatened new tariffs of 50 per cent on China.

Trump upended the world economy last week with sweeping tariffs that have raised fears of an international recession and triggered criticism even from within his own Republican Party.

In response to Trump’s tariffs, China – United States’ major economic rival – unveiled its own 34 per cent duties on US goods to come into effect on Thursday.

Trump on Monday chastised China for not heeding “my warning for abusing countries not to retaliate.”

He said on social media that if China did not immediately back down “the United States will impose additional tariffs on China of 50%, effective April 9th.”

With the incoming 34 per cent rate and new 50 per cent threat, the total additional tariffs this year could hit 104 per cent, the White House told AFP.

Stock markets and oil prices collapsed further, as trading floors across the world were overcome by waves of selling after last week’s sharp losses.

Oil prices tumble further in market

Wall Street was wracked by volatility, bouncing into positive territory on hopes of a 90-day pause in tariffs, only to sink lower when those were dashed by the White House.

Hong Kong collapsed by 13.2 per cent Monday, its worst day in nearly three decades.

Trillions of dollars have been wiped off combined stock market valuations in recent sessions.

Tokyo closed down by almost eight per cent. Frankfurt fell as much as 10 percent in early trading before paring back losses.

Bitcoin also tumbled, while the dollar rebounded after sharp losses last week.

Chinese vice commerce minister Ling Ji said its tit-for-tat duties “are aimed at bringing the United States back onto the right track of the multilateral trade system.”

“The root cause of the tariff issue lies in the United States,” Ling told representatives of United States companies on Sunday.

The Star