US President Donald Trump escalated trade tensions with China on Sunday and issued an ultimatum against newly announced Chinese tariffs.
In a statement from Truth Social, Trump warned that he would respond with a 50% tariff hike on April 9, unless Beijing withdraws the additional 34% tariff hike by April 8.
He said the increase would tiered over existing US tariffs and end continued discussions with China.
Trump characterized China’s actions as “retaliatory” and part of a broader pattern of “long-term trade abuse,” including non-financial trade barriers, illegal subsidiaries and currency manipulation.
He indicated that talks with China will be suspended while negotiations with other countries move forward soon.
I read Trump’s early morning truth social post,
“Yesterday, China issued a retaliatory tariff of 34%, in addition to record tariffs that recorded record tariffs, non-monetary tariffs, illegal corporate subsidies, and large-scale long-term currency manipulation. Therefore, if China does not withdraw its already long-term abuse by April 8, 2025, it will impose an additional meeting with China on April 9.
In another Twitter/X post, Trump claimed that the US economy is benefiting from existing tariffs, citing lower oil, food and interest rates, and denying the existence of inflation. He reiterated his attitude that the previous US administration has earned China an unfair advantage in trade and calls China “the biggest abuser of all of them.”
The statement sparked an immediate market response. US stock futures have immersed and digital assets have also moved low. Bitcoin fell to $78,000, cutting $1,000 within an hour, following the Trump Post, extending its daily loss to more than 6% from its peak at nearly $83,000 on Sunday.
Sudden rhetoric adds new uncertainty to global markets that are already tuned to changes in monetary policy and geopolitical instability. With a 50% tariff threat set to activate within 48 hours, investors are considering whether Beijing will issue a response or further strengthen it.
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