Trump Ramps Up Trade Feud with China: Plans for 50% Import Tax on Chinese Goods
- *
Escalating Trade Tussle with China: Trump Threatens Imposition of 50% Tariffs - Customs standoff with China escalates as Trump suggests imposition of 50% tariffs
In a move that has alarmed global economists and sent shockwaves through financial markets, ** Donald Trump** has announced plans to impose 50% tax on most Chinese imports, following a series of escalating tariffs on goods from various countries in the past week. With the new tax threatening to push consumer prices sky-high and slow down the US economy, concerns are growing both domestically and internationally.
In a scorching message posted on his social media platform, Truth Social, on Monday, the U.S. President reassured the nation, saying, "Don't cower! Don't lack grit! Don't go getting' all jittery." He added, ensuring the public that everything would ultimately be "swell" provided that spirits remained strong, courage prevailed, and patience reigned.
Starting Saturday, most goods imported into the U.S. have been subject to a minimum base tariff of 10%. The imposition of additional tariffs on nearly 60 countries, including the EU, Japan, and China, will come into play from Wednesday. EU imports are set to be hit with a 20% surcharge, while an existing 34% tariff on Chinese imports will be increased to 50% starting Wednesday.
China's response was prompt and severe: Beijing announced it would retaliate with tariffs of the same magnitude, effective Thursday. The ensuing confrontation left Trump fuming, yielding a fiery post on Truth Social, deriding the Chinese policy as the height of trade misconduct and threatening to rake the country over the coals if Beijing failed to rescind its tariffs on U.S. goods by Tuesday.
In the event that China persists, an additional 50% tax on Chinese imports is expected to go into effect on Wednesday, amplifying the existing tariffs and bringing the total new import taxes on Chinese goods since Trump took office to a staggering 104% in just under three months. Strikingly, negotiations with China regarding trade policy are off the table, with the U.S. instead looking to engage in talks with over 50 other countries seeking to negotiate tariff reductions.
The sudden change in trade policy has sparked intense criticism, even from leading U.S. economic figures. Jamie Dimon, CEO of JPMorgan Chase, has expressed concerns over the "quagmire" created by Trump's policies, citing potential rise in prices, declining corporate profits, and depreciation of the US dollar as cause for alarm. Billionaire hedge fund manager Bill Ackman has gone so far as to accuse Trump of launching an "economic war against every nation on Earth" with his tariffs.
Despite the heated opposition, Trump's closest advisor, tech billionaire Elon Musk, has attempted to strike a conciliatory note. Following the release of a video advocating for a free trade zone between North America and Europe during a speech at the Italian right-wing populist Lega party's convention, Musk shared a video featuring renowned U.S. economist Milton Friedman on his online platform, X. In the video, Friedman underscores the interconnectedness of global economics and the importance of a free market " to engender harmony and peace among the peoples of the world."
As stock markets around the globe plummeted, with Germany's benchmark index, the Dax, sinking by 10% at the open and closing the day with a 4.1% loss, and Hong Kong's Hang Seng Index plummeting by over 13%—the worst trading day in nearly three decades— it remains to be seen how the U.S., and the world, will weather the trade storm brewing on the horizon.
- Donald Trump
- China
- U.S. President
- Trade policy
- Trade tariffs
- U.S economy
- Consumer prices
- Stock market crash
- Beijing
- Trade conflict
- EU tariffs
- Global trade
- Japan tariffs
- The proposed 50% import tax on Chinese goods by Donald Trump has escalated trade tensions, with China threatening to retaliate with the same magnitude of tariffs effective Thursday.
- With consumer prices expected to skyrocket and the U.S. economy likely to slow down, global economists have warned about the potential consequences of these tariff battles.
- Elon Musk, a close advisor to Trump, has tried to promote a free trade zone between North America and Europe, citing the interconnectedness of global economics and the importance of a free market for global harmony.
