US President Donald Trump has escalated the trade war with China, threatening to impose even higher tariffs on Chinese goods if Beijing does not withdraw its own tariffs. The move has sent shockwaves through global markets, with stocks plummeting and investors growing increasingly worried about a potential recession.
Trump’s administration is pushing forward with plans to increase tariffs on Chinese imports, which could push the duty rate as high as 50%. China has responded by calling Trump’s threat “economic bullying” and vowed to protect its own interests. The European Union has also proposed counter-tariffs of up to 25%, sparking concerns about a global trade war.
The US Dow and S&P indexes ended lower on Monday, with the S&P 500 touching its lowest level in more than a year. Asian stocks also plummeted, with Taiwan’s shares falling almost 10% – the biggest one-day percentage fall on record. Wall Street leaders have warned that high tariffs could have lasting negative consequences for the US economy.
The Trump administration is trying to justify its trade strategy by saying it will help the US recover an industrial base that has been eroded over decades of trade liberalization. However, critics argue that this approach could lead to a recession and harm American manufacturers and farmers.
As the deadline for the tariffs is approaching, countries are seeking to negotiate ahead of Wednesday’s deadline. The European Commission said it stands ready to negotiate a “zero for zero” deal with Trump’s administration. China has also signaled its willingness to engage in talks, but so far, no concrete progress has been made.
The situation remains fluid, and investors are still trying to determine whether Trump’s tariffs are permanent or a pressure tactic to win concessions from other countries. With the world watching, it remains to be seen how this trade standoff will play out.
Source: https://www.reuters.com/world/trumps-tariff-medicine-injects-turmoil-into-global-markets-2025-04-07