JAKARTA – US President Donald Trump has reignited trade tensions with China, threatening to impose a further 50% import tariff on Chinese goods—a drastic move expected to send fresh shockwaves through the global economy.

The threat followed China’s announcement of retaliatory tariffs of 34% on US products. In a post on his platform Truth Social, Trump declared that any retaliatory action by Beijing would be met with a significantly harsher response from Washington.

“If China does not withdraw the 34% tariff increase—on top of its long-standing unfair trade practices—before tomorrow, April 8, 2025, we will impose an additional 50% tariff on China, effective April 9,” he said in an official statement on Monday (7/4).

The escalation comes amid global equity market turmoil. On Wall Street, the S&P 500 index dropped more than 4%, pushing it over 20% below its December peak—a level that technically signals a bear market, often associated with steep sell-offs.

Since Trump unveiled his “Liberation Day” trade policy and new tariffs on Wednesday (2/4), global equity markets have recorded losses totalling USD 9.5 trillion, according to Bloomberg. The Nasdaq and key Asian indices—including Hong Kong’s Hang Seng and China’s CSI 300—have also plummeted. The Hang Seng, in particular, suffered a 13% daily decline, the steepest since the 1997 financial crisis.

Trump placed the blame squarely on the Chinese government. “The market collapse is happening because China failed to heed my warning not to retaliate,” he said. (EF/ZH)