According to Euronows, broader markets have recovered as investors await development for trade negotiations.
Beijing declared that it “fights to the end” after US President Donald Trump threatened to impose an additional 50% on all Chinese imports. The trade war between the two biggest economies in the world is intensifying, with both sides having little tendency to negotiate.
Trump had already announced new tariffs last Wednesday. This means that 34% import taxes on Chinese products. In response, China imposed a 34% tariff on US goods two days later.
On Monday, Trump warned about more tariffs if China does not withdraw retaliation tariffs.
“If China does not exceed long-term trading abuse by 34% by tomorrow, April 8, 2025, the US will impose additional tariffs on 50% of China on April 9,” he posted on social media. If enacted, China will face cumulative tariffs of 124%, with existing 20% US tariffs, recently announced 34%, and an additional 50%.
In response, China’s Commerce Department said “the US threat to expand China’s tariffs is a mistake, as well as a mistake,” adding “If the US claims in its own way, China will fight to the end.” The ministry urged the US to resolve differences through equal dialogue based on mutual respect.
Previously, Trump told Israeli Prime Minister Benjamin Netanyahu that he had not considered suspending planned tariffs while negotiations were open. However, he repeatedly poses the threat of imposing an additional 50% tariff on China.
Trump also showed at a press conference that he would not accept the EU’s offer for zero tariffs on automobiles and industrial products. “The European Union was very bad for us. They’ll have to buy energy from us because they need it and they have to buy it from us. They can buy it and we can knock off $3500 billion in a week.”
The EU has removed plans to impose a 50% retaliation fee on American whiskey and instead proposed a 25% tariff on some US goods.
MNA/