tl;dr
U.S. President Donald Trump issued an ultimatum to China, demanding the removal of recently announced Chinese tariffs within one day or face a 50% tariff increase. He accused China of "long-term trading abuses" and suspended talks with the country while indicating negotiations with other nations. Tr...
U.S. President Donald Trump has escalated trade tensions with China by issuing an ultimatum over newly announced Chinese tariffs. In a statement on Truth Social, Trump warned that unless Beijing retracts its additional 34% tariff increase by April 8, the U.S. will respond with a 50% tariff hike effective April 9. He accused China of "long-term trading abuses" and suspended talks with the country while indicating negotiations with other nations.
Trump's early morning Truth Social post reads, "Yesterday, China issued Retaliatory Tariffs of 34%, on top of their already record setting Tariffs, Non-Monetary Tariffs, Illegal Subsidization of companies, and massive long term Currency Manipulation, despite my warning that any country that Retaliates against the U.S. by issuing additional Tariffs, above and beyond their already existing long term Tariff abuse of our Nation, will be immediately met with new and substantially higher Tariffs, over and above those initially set."
In a separate Twitter post, Trump claimed the U.S. economy was benefiting from existing tariffs, citing declining oil, food, and interest rates and denying the presence of inflation. He reiterated his stance that prior U.S. administrations allowed China to gain an unfair advantage in trade, calling China the "biggest abuser of them all."
These statements triggered immediate market reactions, with U.S. equity futures dipping and digital assets moving lower. Bitcoin fell to $78,000, shedding $1,000 within the hour following Trump’s posts and extending its daily losses to over 6% from a peak near $83,000 on Sunday. The heightened rhetoric has added uncertainty to global markets amidst shifting monetary policy and geopolitical instability. With the 50% tariff threat set to activate within 48 hours, investors are considering whether Beijing will issue a response or further intensify the standoff.