President Donald Trump has issued an ultimatum to China via social media, warning that he will impose an additional fifty percent tariff on Chinese imports unless Beijing rescinds its newly announced thirty‑four percent counter‑tariff.
The threat escalates an already fraught trade dispute between the world’s two largest economies and has sent global markets into a tailspin.
China’s retaliatory duties followed Trump’s recent round of protectionist measures, which the former president dubbed “Liberation Day.” Those measures include a sweeping thirty‑four percent levy on Chinese goods and a baseline ten percent tariff on most other trading partners. Trump has given Chinese authorities until Tuesday to reverse their counter‑tariff or face a tariff rate of up to one hundred and four percent on certain products, factoring in previously enacted duties.
Beijing’s Ministry of Commerce condemned the proposed increase as “a mistake on top of a mistake” and vowed never to yield to “blackmail.” A spokesperson accused Washington of pursuing a hegemonic and unilateralist approach and reaffirmed China’s resolve to defend its economic interests.
The threat has rattled financial markets. U.S. stocks opened sharply lower on Monday, though some losses were later trimmed. European markets fared worse; London’s main index closed more than four percent down. In Asia, Hong Kong’s Hang Seng index plunged over thirteen percent, its largest single‑day fall since nineteen ninety‑seven. Mainland Chinese markets remained largely flat, while Taiwan, Singapore, Thailand and Indonesia all recorded further declines.
Diplomatic channels remain active even as tensions rise. Trump announced that talks with China would be terminated if Beijing did not back down, while promising to begin immediate negotiations with other nations on “fair and reciprocal” trade deals. Israeli Prime Minister Benjamin Netanyahu pledged to work swiftly to resolve Israel’s trade imbalance with the United States after their White House meeting. Japan is reportedly dispatching envoys to Washington to discuss its tariff status, and the European Commission has proposed a zero‑for‑zero tariff arrangement, warning that the EU stands ready to retaliate if necessary.
Should the dispute deepen, both economies face serious risks to supply chains and investor confidence. Chinese exporters of electronics, furniture and machinery could be hit hardest, while U.S. producers of grains, aircraft and pharmaceuticals may lose key markets. The prospect of a prolonged trade conflict raises concerns about global economic stability and underscores the urgent need for diplomatic solutions.
As the world watches, the standoff between Washington and Beijing illustrates how quickly protectionist measures can unsettle markets and strain alliances. Without a timely de‑escalation, the trade war threatens to inflict lasting damage on the global economy and test the resilience of international cooperation.
