US President Donald Trump has threatened additional tariffs on China, sparking concerns about the escalating global trade war and its impact on the economy. The move comes after China vowed to retaliate against US tariffs announced last week.
The US tariffs, which are set to take effect on April 9th, will increase the combined rate of US tariffs on Chinese goods to 104%. This includes a 20% tariff already in place for fentanyl trafficking and Trump’s separate 34% tariffs announced last week.
China has responded angrily, saying it will not back down. “The US threat to escalate tariffs on China is a mistake on top of a mistake and once again exposes the blackmailing nature of the US,” said a statement from the Commerce Ministry in Beijing.
Global markets have been shaken by the news, with the Dow Jones Industrial Average falling 0.9% and the S&P 500 slumping 0.2%. European Commission President Ursula von der Leyen has vowed to focus on trade with other countries, saying there are “vast opportunities” elsewhere.
The US Federal Reserve has also warned that the tariffs could increase inflation, with Chair Jerome Powell urging caution before making any decisions. White House trade adviser Peter Navarro has suggested that talks could be a drawn-out process, as countries need to address non-tariff cheating issues.
The latest move has exposed some fractures among Trump’s supporters, including billionaire Elon Musk, who has expressed skepticism about tariffs and their impact on Tesla’s costs. The situation is set to continue, with US trade negotiations with Japan and other countries ongoing.
Source: https://apnews.com/article/trump-tariffs-stock-market-52a00ea2bb92a067ee72343941b02cd4