ZoyaPatel

Donald Trump threatens 50 percent tariffs on China amid escalating trade war

Mumbai

U.S. president warns of harsher economic penalties if China does not reverse retaliatory tariffs.

A shipping container is lifted at the Port Jersey Container Terminal in Jersey City, New Jersey, on April 8, 2025. Photo by Charly Triballeau/AFP
A shipping container is lifted at the Port Jersey Container Terminal in Jersey City, New Jersey, on April 8, 2025. Photo by Charly Triballeau/AFP

By Anna Fadiah and Hayu Andini

Donald Trump threatens 50 percent tariffs on China amid escalating trade war tensions, a move that signals a new phase in the long-standing economic conflict between the world’s two largest economies. On Monday, the U.S. president issued a stark warning through social media, responding to Beijing’s retaliatory tariff hike with threats of even harsher penalties.

“Yesterday, China issued Retaliatory Tariffs of 34 percent, on top of their already record-breaking Tariffs, Non-Monetary Tariffs, Illegal Subsidies to companies, and massive long-term Currency Manipulation,” Trump posted online, referring to China’s newly imposed tariffs on U.S. goods.

This announcement follows last week’s declaration from the White House, which outlined the imposition of reciprocal tariffs on more than 180 countries, ranging from 10 percent to 50 percent. China, as one of the main targets, was hit with a 34 percent tariff. Beijing swiftly responded with its own identical 34 percent tariff on all U.S. imports, deepening the trade standoff and pushing both countries closer to a full-scale economic clash.

An ultimatum from Trump to Beijing

The latest threat by Donald Trump to impose 50 percent tariffs on China adds a sharp edge to an already strained relationship. The president made it clear that unless China reverses its retaliatory measures by April 8, the United States will escalate its response. The new tariffs would take effect immediately on Wednesday, March 9.

“I have warned that any country that retaliates against the United States with additional Tariffs, above and beyond the long-standing abuse of Tariffs already in place against our Country, will be immediately subject to new and much higher Tariffs, greater and above those originally imposed,” Trump stated, showing no signs of backing down.

This ultimatum is not just about economic policy; it reflects the broader theme of Trump’s presidency—asserting American power and rewriting international trade relationships. According to Trump, China’s trade practices, including currency manipulation and state subsidies, have given Beijing an unfair advantage for decades. Now, he says, it is time for the U.S. to fight back more aggressively.

Ceasing talks and turning to new allies

The tariff threat was not the only message Trump delivered on Monday. In the same post, he announced a halt to all discussions with China over trade negotiations, making it clear that there would be no further diplomatic talks unless China backs down.

“In addition, all talks with China regarding their request for a meeting with us will cease! Negotiations with other countries, who have also requested a meeting, will begin immediately,” Trump added.

This decision suggests a pivot in Trump’s trade strategy—away from multilateral confrontation with China and toward bilateral discussions with other nations. Whether this tactic will isolate Beijing or simply raise tensions further remains to be seen. What is clear, however, is that the White House is seeking to reshape the global trade order on its own terms.

China’s response and the economic stakes

So far, China has matched the United States step for step. The 34 percent tariff imposed by Beijing is widely viewed as a direct countermeasure to Trump’s original tariffs. China has also signaled its willingness to endure a prolonged trade war, even as global markets grow increasingly jittery.

For businesses and consumers, the rising tariffs mean higher costs and greater uncertainty. American farmers, manufacturers, and retailers have already voiced concern about the fallout from previous tariff rounds. The potential for additional tariffs—especially as high as 50 percent—has further rattled industries that depend heavily on global supply chains.

China, too, faces its own set of risks. Its economy, although more diversified than in past decades, still relies heavily on exports to the United States. A steep drop in U.S. demand, driven by new tariffs, could dent Chinese growth and complicate the country’s post-pandemic recovery efforts.

Historical context: a long-simmering conflict

The U.S.-China trade war did not begin overnight. Tensions have been building for years, driven by accusations of intellectual property theft, forced technology transfers, and unfair market access restrictions. Trump’s administration brought those frustrations to the forefront, turning them into headline-making trade policies.

Since 2018, when the trade war officially began, both countries have traded blows in the form of tariffs, export controls, and even diplomatic restrictions. Despite brief truces and negotiations, including the so-called “Phase One” trade deal signed in early 2020, the fundamental disagreements remain unresolved.

Now, with the 2024 election season behind him and his administration seeking to cement its economic legacy, Trump appears to be doubling down on his hardline approach. By threatening 50 percent tariffs on China, he is making a clear statement: the United States will not back down without significant concessions.

Global implications and market reaction

The world is watching this latest exchange between Washington and Beijing with a mix of concern and anticipation. Markets responded with immediate volatility after Trump’s announcement, with stock indices in Asia, Europe, and North America experiencing sharp swings. Currency markets also reacted, with the yuan weakening slightly against the dollar.

Economists warn that continued escalation could disrupt global trade flows, inflate prices, and slow economic growth worldwide. International institutions such as the World Trade Organization have urged both countries to seek resolution through dialogue rather than confrontation. However, Trump’s decision to end talks with China indicates that diplomacy may be off the table—for now.

High-stakes weeks to come

The coming days will be crucial. China must decide whether to yield to Trump’s pressure and reverse its 34 percent tariffs or brace for a new round of U.S. penalties. For its part, the United States is poised to act swiftly if Beijing refuses to back down.

Donald Trump’s strategy is high-risk, high-reward. If successful, it could force China to make long-sought changes to its trade practices. If not, it could lead to a deeper economic rift that spills over into other areas of the U.S.-China relationship, including technology, security, and geopolitics.

Either way, the threat of 50 percent tariffs has once again placed trade policy at the center of the global stage. And as Trump has shown before, he is not afraid to shake up the system to get what he wants.

Ahmedabad