President Donald Trump has announced a new round of tariffs on Chinese imports. If Beijing does not comply with his demands by today, these tariffs will be enforced. This news has led to fears of a global recession as Trump remains steadfast in his trade policies.
China’s Commerce Ministry has strongly opposed Trump’s additional tariffs, calling them a “mistake upon a mistake” and vowing countermeasures. The ministry emphasized the futility of a trade war and urged the US to cancel all unilateral tariff measures against China, advocating for resolving differences through equal dialogue. Following a major market rout triggered by Trump’s new tariffs, global stock markets showed signs of recovery.
Asian markets closed higher, with Japan’s Nikkei 225 up by 6% and other benchmarks in South Korea, Australia, and Hong Kong also posting gains. European markets followed suit, with increases across significant indexes. US stock futures pointed to a higher opening as well.
The US Treasury Secretary has described China’s retaliatory tariffs, imposed in response to US levies, as “a big mistake.” This statement comes amid both nations’ escalating tensions and threats of further economic measures.
Trump’s new tariff ultimatum
On Truth Social, President Trump reiterated his warning that any country retaliating against the US with additional tariffs would face even harsher penalties.
He threatened to impose additional tariffs on China if they did not withdraw their increased tariffs by April 8, 2025. Trump added that all discussions with China would be terminated if they did not comply and that negotiations with other nations would commence immediately. China’s US embassy responded firmly, stating they would not succumb to pressure or threats.
Liu Pengyu, an embassy spokesperson, emphasized that China would protect its legitimate rights and interests. Democratic leaders in Congress have warned that Trump’s tariffs might trigger a severe economic recession. The US stock markets have reflected this anxiety, with the Cboe Volatility Index, known as Wall Street’s “fear gauge,” reaching its highest levels since the Covid-19 pandemic.
Following China’s rejection of Trump’s ultimatum, Treasury Secretary Bessent criticized their tariff escalation as misguided. He maintained that the US holds an advantageous position in the trade war, pointing out that China exports significantly more to the US than vice versa. As the US and China exchange economic blows, global markets remain volatile, and the international community closely watches these developments.
The Trump administration’s aggressive trade policies have stirred both domestic and international reactions, setting the stage for potentially far-reaching economic and political consequences.
Image Credits: Photo by Joshua Hoehne on Unsplash
