Trump threatens China tariffs, markets fear impact

WASHINGTON, D.C. — Undeterred by a panicked stock market, President Donald Trump threatened additional tariffs on China on Monday, raising fresh concerns that his drive to rebalance the global economy could intensify a financially destructive trade war.Trump's threat came after China said it would retaliate against US tariffs he announced last week."If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th," Trump wrote on Truth Social. "Additionally, all talks with China concerning their requested meetings with us will be terminated!"The US president has shown few signs of backing down on tariffs despite the mounting pressure in the financial markets. His commitment to tariffs could have devastating effects for the global economy, even though Trump is banking that it will ultimately pay off with manufacturing jobs.Asked Monday if he would consider a pause on his widespread tariffs, Trump said, "We're not looking at that." The US president said he was open to negotiations "if we can make a really fair deal and a good deal for the United States." Trump added that it's possible to have both negotiated settlements with other countries and permanent tariffs.Even as Israeli Prime Minister Benjamin Netanyahu said his country would take its tariffs against US goods to zero, Trump was noncommittal about removing the new import taxes placed on an ally. The White House also said Monday that Trump would veto a Senate bill that would mandate congressional approval for new tariffs, a bet that the critical mass of Republican lawmakers will loyally back him despite the economic and political risks.However, there are signs of frustration even among Trump's allies. Sen. John Kennedy, a Louisiana Republican, said he supports the president's goals of better trade deals but worries about the economic uncertainty."We don't know if the medicine will be worse than the disease," Kennedy said, adding, "This is President Trump's economy now."If Trump implements his new taxes on imports from China, US tariffs on Chinese goods would reach a combined 104%. The new taxes would be on top of the 20% tariffs announced as punishment for fentanyl trafficking and his separate 34% tariffs announced last week. Not only could that increase prices for American consumers, it could also give China an incentive to flood other countries with cheaper goods and seek deeper relationships with other trading partners.China responded angrily and said it would 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. "China will never accept this. If the US insists on its own way, China will fight to the end."After sell-offs on the prior two days of trading, the Dow Jones Industrial Average on Monday fell 0.9%. The S&P 500 slumped 0.2%, and the Nasdaq composite was up 0.1%.