In a recent development President Donald Trump has threatened to impose an additional 50% tariff on Chinese imports unless China withdraws its newly announced 34% tariff increase on U.S. goods, according to WatcherGuru.
This escalation highlights the intensifying trade tensions between the two largest economies in the world.
Background
On April 2, 2025, President Trump declared a national emergency to address what he described as a “large and persistent U.S. trade deficit.” Utilizing his authority under the International Emergency Economic Powers Act (IEEPA), he imposed a 10% tariff on all imports, effective April 5, 2025. Additionally, he announced higher tariffs for several countries, including China, with rates reaching up to 34%. These measures were justified by the administration as a response to perceived unfair trade practices and national security concerns.
China’s Response
In retaliation, China imposed a 34% tariff on all U.S. goods, effective April 10, 2025. The Chinese government criticized the U.S. tariffs as “unilateralism, protectionism, and economic bullying,” arguing that such measures disrupt global production and supply chains, thereby hindering economic recovery.
Global Economic Impact
The trade dispute has had significant global economic repercussions. Financial markets worldwide have experienced turmoil, with major indices such as the Dow Jones, Nasdaq, and S&P 500 facing substantial declines. The Australian share market, for instance, suffered a dramatic plunge, wiping $160 billion in value and reaching a 15-month low.Analysts warn that these developments could lead to de-globalization and recession risks, as global trade volumes contract at the fastest pace since 2008.
Conclusion
The ongoing trade dispute between the U.S. and China continues to evolve, with significant implications for global trade and economic stability. The situation remains fluid, and stakeholders worldwide are closely monitoring developments to assess their potential impact on international markets and economies.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/donald-trump-threatens-to-add-additional-50-tariff-on-china/