Former US President Donald Trump has intensified his trade confrontation with China, warning of sweeping new tariffs just days before their scheduled implementation. Speaking defiantly via Truth Social, Trump stated that the US is prepared to escalate if China does not reverse its recently announced 34% tariff hike by April 8.
“We’re waiting for their call,” Trump posted, adding that if China fails to comply, an additional 50% tariff will be slapped on Chinese imports starting April 9. This would raise total US tariffs on Chinese goods to a staggering 104%, including prior levies tied to fentanyl trafficking and tariffs announced last week.
China’s Commerce Ministry issued a firm response, promising to “fight to the end” and condemning the proposed US tariffs as a “mistake on top of a mistake,” accusing the United States of “blackmailing.”
India’s Commerce and Industry Minister Piyush Goyal weighed in on the situation at the India Global Forum, stating that China’s economic ascent has been “fueled by unfair trade practices.” He urged global leaders to focus on “fair play and honest value,” warning that without balance, the world could face “more turbulence.” Goyal added that India is well-prepared to weather the market volatility and sees opportunity in the current uncertainty.
Meanwhile, the European Union is preparing retaliatory tariffs of its own. While EU leaders proposed a rollback of mutual tariffs, Trump rejected the offer, accusing the EU of being “very bad to the US.” Currently, the EU imposes a 10% tariff on American cars and is expected to vote on a staged retaliatory tariff plan beginning April 15.
South Korea is taking a different approach. Acting President Han Duck-soo expressed a willingness to negotiate with the United States, clarifying in a CNN interview that Seoul has no intention of aligning with China or Japan to oppose the new tariffs. “We would clearly like to negotiate,” Han stated.
Despite the escalating rhetoric, Wall Street responded with optimism. Major US indexes surged at Tuesday’s open, driven by investor hopes that negotiations may still take place.
- The Dow Jones Industrial Average jumped 861.5 points (2.27%) to 38,827.10
- The S&P 500 rose 131.3 points (2.59%) to 5,193.57
- The Nasdaq Composite soared 577.8 points (3.70%) to 16,181.04
The rally comes after a sharp market selloff last week that wiped out trillions in value, underscoring investor sensitivity to global trade tensions.