Washington: President Donald Trump threatened additional tariffs on China on Monday, raising new concerns that his rebalancing of the global economy could lead to a trade war. His threat from Trump on social media comes after China said it would retaliate against U.S. tariffs announced last week.
“If China does not withdraw 34% of its already long-term trading abuses by April 8, 2025, tomorrow, then the U.S. will impose an additional 50% tariff on China, effective April 9,” he wrote. “In addition, all negotiations with China regarding their request to meet with us will be terminated!” Trump remains provocative as stock markets continue to decline, concerns about the recession.
“Be strong, brave, patient, and greatness will be the result!” he wrote.
As trading on Monday morning began, the Dow Jones industrial average fell by 1,200 points, and the S&P 500 is expected to enter a bear market, meaning a 20% drop from its recent high. Even some of Trump’s allies have raised alarms about economic damage, and financial forecasts show that there is more pain for U.S. businesses, consumers and investors.
The Republican president insists that his tariffs are necessary to rebalance global trade and rebuild domestic manufacturing. He accused other countries of “utilizing the good America!” about international trade, saying, “Our past leaders allowed this.” He regarded China as “the biggest abuser for all” and criticized Beijing for increasing its own tax on retaliation.
Trump also called on the Fed to lower interest rates. Fed Chairman Jerome Powell warned Friday that tariffs could increase inflation, saying: “There is a lot of waiting and seeing things, including us, before any decision is made.” According to CME Group’s FedWatch, investors expect the U.S. central bank has lowered its benchmark interest rate by at least four times by the end of the year, a sign that concerns about inflation will be overshadowed by fears of layoffs and economic declines.
Trump spent a weekend in Florida and arrived Thursday night to compete in his Miami golf course for Saudi-funded competition. He lives in Mar-a-Lago, a private club in Palm Beach, and plays golf on two nearby properties. On Sunday, he posted a video saying he played a driving game and took a reporter on the Air Force that night, where he won the club championship.
“It’s a good thing to win,” Trump said. “You heard I won, right?” He also said that despite the turmoil in global markets, he would not back down on tariffs. “Sometimes, you have to take medication to solve some problems,” Trump said. Goldman Sachs released a new forecast that even if Trump traces back from tariffs, a recession is more likely. The financial company said economic growth will slow down significantly, “a sharp tightening under financial conditions, foreign consumer boycotts and a continued surge in policy uncertainty, which may exceed the capital expenditure we previously assumed.” European Commission President Ursula von der Leyen said the EU would focus on trade with other countries outside the United States, saying there are “huge opportunities” elsewhere.
Trump said he spoke with Japanese Prime Minister Shigeru Ishiba to start trade talks. He complained to the Truth Society that “they treated the United States very poorly in terms of trade” and “they didn’t take our cars, but we took millions.” Ishiba said he told Trump that he was “very worried” that tariffs would block investment in Japan, the largest U.S. investor in the past five years. He described the situation as a “national crisis” and said his administration would negotiate with Washington, urging Trump to reconsider the tariffs.
White House trade adviser Peter Navarro suggested that the state needs to do more than lower its own tariff rates to reach a deal, but also said they must make structural changes to the tax and regulatory code. “Let Vietnam go to Vietnam,” he said on CNBC. “When they come to us, we sign up for zero tariffs, ‘It doesn’t make much sense to us because it’s irrelevant cheating.” On Monday, the president planned to welcome the Los Angeles Dodgers to the White House to celebrate their World Series victory. He also met with Israeli Prime Minister Benjamin Netanyahu, who is expected to hold a joint press conference in the afternoon.
Trump has struggled for a unified front after the chaotic infighting of his first term. However, economic turmoil exposed some fractures within his different league of supporters. Hedge fund manager Bill Ackman slammed “indifferent to the stock market and the economic collapse” on Sunday after Commerce Secretary Howard Lutnick. He said before joining the Trump administration, Cantor Fitzgerald, a financial company led by Lutnick, made immediate profits from bond investments.
Ackman apologized for his criticism on Monday but reiterated his concerns about Trump’s tariffs. He wrote on X: “After watching me think this is a major policy mistake, my country and the president have been making huge economic progress, and are at risk due to tariffs.”
Kevin Hassett, the White House’s top economic adviser, told Fox News that Ackman should “reduce his rhetoric.” He insists that other countries (not the United States) “will bear the brunt of tariffs.” Trump has expressed doubts over tariffs over the weekend that billionaire Elon Musk, the top adviser to the federal government overhaul, said he was skeptical of the tariffs. Musk said the tariffs would increase the cost of his electric car maker Tesla.
“I hope that Europe and the United States, in my opinion, both Europe and the United States should adopt a zero tariff situation, effectively establishing a free trade zone between Europe and North America,” Musk said in a video conference with Italian politicians. He added: “This is certainly my advice to the president.” Navarro later told Fox News that Musk “does not understand” the situation. “He sells cars,” Navarro said. “That’s his job,” he added: “He just protects his own interests like any businessman.
