President Donald Trump on Monday vowed to slap 50% tariffs on Chinese goods, escalating an already tense trade war.
The announcement came amid a brutal global market selloff, with investors fleeing risk as fears of a looming recession intensified.
Last week, Trump ignited turmoil by imposing sweeping tariffs, drawing criticism from allies and sparking retaliation from Beijing.
China hit back with its own 34% duties on U.S. imports, set to take effect Thursday, signaling deepening economic hostilities.
Trump lashed out on social media, warning China not to retaliate and threatening more tariffs effective April 9.
“If China doesn’t stand down, the United States will impose additional tariffs of 50%,” he wrote, adding urgency to the standoff.
Combined with existing measures, U.S. tariffs on China could surge to 104% this year, the White House confirmed to AFP.
Global stock markets tanked, with Hong Kong plunging 13.2%—its worst day in nearly 30 years—while Tokyo fell 8% and Frankfurt dropped 10%.
On Wall Street, hope for a tariff truce briefly lifted spirits before collapsing again under White House denials of any pause.
“Don’t be Weak! Don’t be Stupid!” Trump posted before markets opened, urging Americans to stay strong for the sake of “greatness.”
Despite threats, Trump said the U.S. remained open to talks with countries ready to negotiate fair trade terms.
Meanwhile, EU ministers met in Luxembourg, exploring retaliatory options, including taxing U.S. tech giants, though divisions quickly emerged.
Critics warn the tariff war could stoke inflation and stall global growth, with JPMorgan’s CEO predicting a slowdown and rising costs.
“The market is screaming recession,” said Stephen Innes of SPI Asset Management, citing collapsing demand and market panic.
Even allies like Israel are caught in the crossfire, with Prime Minister Netanyahu meeting Trump after being hit with 17% tariffs.