Donald Trump's commitment to raise tariffs by 50% unless China complies has caused market fluctuations and heightened fears that his aggressive approach could lead to deeper economic disruptions than taxes.
On the fourth day of tariff increases, President Donald Trump threatened to impose an additional 50% tax on Chinese imports if Beijing did not raise retaliatory tariffs by April 9, 2025. The statement on Truth Social heightened the trade war between the United States and China. Trump claimed that a 34% increase in tariffs from China – along with years of "long-standing trade abuse" – would push the United States to take action unless it was quickly reversed.
Trump held firm amidst market fears. He said, "We are not looking at a pause," rejecting tariff pauses for trade discussions. Instead, he stated that "many countries" want to talk and that any deal must be "fair" or the United States will end trade. His tone returned to his "America First" trade stance during his administration.
National Economic Council Chairman Kevin Hassett claimed that the administration had spoken with over 50 countries interested in trade agreements, supporting Trump. The message was clear: the United States would cooperate on its own terms.
China responded quickly. Chinese embassy spokesperson Liu Pengyu in Washington stated that this move is considered "unilateral, protectionist, and economic bullying." He noted that China's threat is a poor negotiating approach, adding that Beijing will "protect" its interests vigorously.
This was followed by market fluctuations. The S&P 500 index, which represents the largest U.S. companies, declined throughout the day before finishing down by 0.2%. Apple’s stock dropped by 3.7% due to investor concerns over supply chain issues stemming from its heavy reliance on Chinese manufacturing. However, the tech-heavy Nasdaq Composite rose by 0.1%, indicating a mixed mood across sectors.
It also pointed to a collapse of internal political consensus due to economic disparity, opportunity, and education. The United States is no longer viewed as a cooperative leader but as a unilateral player imposing its will, reflecting these internal divisions.
