USA: President Donald Trump has issued a stern warning about escalating tariffs on Chinese goods unless China removes its retaliatory taxes on U.S. products. The additional tariff hike could push the tax on some U.S. companies importing Chinese-made goods up to an unprecedented 104 percent, potentially creating a major economic ripple effect. This threat comes after China imposed a 34 percent tariff on U.S. products, which Trump says is detrimental to American businesses. The looming tariffs could take effect as early as Tuesday, April 9, according to the White House.
In response to speculation about a possible 90-day pause in the trade dispute, the White House quickly dismissed these reports as “fake news,” heightening concerns over the direction of U.S.-China trade relations. Financial markets reacted sharply to the news, with U.S. stock markets plummeting for the third consecutive day, reflecting widespread fear that the standoff is harming global trade. Major stock indexes in Asia and Europe also felt the impact, as investors grappled with the uncertainty surrounding Trump’s aggressive tariff policies.
Amid the growing global tensions, the European Union has indicated it may prepare countermeasures, signaling that Europe is not willing to let the trade war go unchecked. European Commission President Ursula von der Leyen reaffirmed the EU’s openness to negotiation with the U.S. on tariffs but also emphasized that Europe would respond if necessary. In the U.S., investor Bill Ackman warned that the ongoing tariff escalation could lead to an economic downturn, potentially creating what he described as an “economic nuclear winter.”
Despite the growing backlash from both the business community and international partners, Trump has remained resolute in his stance, encouraging Americans to be patient with the administration’s long-term strategy. Meanwhile, UK businesses, particularly manufacturers, are feeling the strain of the ongoing trade dispute, with Prime Minister Keir Starmer pledging support for companies like Jaguar Land Rover, which are directly impacted by the tariffs. The global economic uncertainty continues to escalate as both sides prepare for the next steps in this high-stakes trade showdown.
