Washington, D.C., April 7, 2025 — Tensions between the United States and China reached a new high on Monday as former President Donald J. Trump, posting on his Truth Social platform, announced that the U.S. would impose an additional 50% tariff on Chinese imports if China does not withdraw its recently enacted 34% retaliatory tariffs by April 8, 2025. The statement, shared via the X account @TrumpDailyPosts at 15:15 UTC, also declared the termination of all scheduled talks with China, signaling a significant escalation in the ongoing trade war between the world’s two largest economies.
Trump’s post, originally made at 11:14 AM on April 7, accused China of long-standing trade abuses, including “record-setting tariffs, non-monetary tariffs, illegal subsidization of companies, and massive long-term currency manipulation.” He warned that the new U.S. tariffs, set to take effect on April 9, would be “over and above” existing tariffs if China failed to comply with his ultimatum.
Additionally, Trump stated that the U.S. would immediately begin negotiations with other countries that have requested meetings, though he did not specify which nations.
The announcement follows China’s decision on April 6 to impose a 34% tariff on U.S. goods, a move seen as retaliation for Trump’s earlier tariff policies targeting Chinese imports. According to a Reuters report from April 4, China’s tariffs were part of a broader response that also included export controls on rare earths and the addition of 11 U.S.
entities to its “unreliable entity” list, which allows Beijing to take punitive actions against foreign firms. The Chinese measures have intensified fears of a global recession, with JP Morgan estimating a 60% chance of an economic downturn by the end of 2025, up from 40% previously.
The U.S. stock market felt the immediate impact of the escalating trade war, losing over $2.1 trillion at the market open on April 7, as reported by @WatcherGuru on X. The volatility was exacerbated by a rumor of a 90-day tariff pause, which briefly turned markets green before the White House debunked it as “fake news,” causing stocks to plummet again. The S&P 500 fell 9.08%, the Nasdaq dropped 10.02%, and the Dow declined 7.86% for the week, marking some of the largest market losses since the pandemic.
Global reactions to the trade standoff have been swift. The European Union, facing its own 20% tariffs from the U.S., offered a “zero-for-zero” tariff deal on April 7 to avert a trade war, according to Reuters. EU ministers prioritized negotiations over retaliation but are preparing countermeasures on up to $28 billion of U.S. imports, including dental floss and diamonds, to be implemented as early as April 15. Meanwhile, Mexico has chosen not to retaliate with tariffs, focusing instead on diplomatic efforts to mitigate the impact of U.S. trade policies.
Economic analysts warn of severe long-term consequences. The Tax Foundation estimated on April 4 that Trump’s proposed tariffs, including a 20% universal tariff and an additional 50% on China, could reduce U.S. economic output by 1.3% before foreign retaliation, while increasing federal tax revenues by $3.8 trillion over the next decade. However, the tariffs are also projected to shrink the U.S. capital stock and reduce employment by 142,000 full-time equivalent jobs.
On X, reactions to Trump’s post were mixed. Some users, like @FLPatriot and @RickD_GK, expressed support, calling Trump the “GOAT” and urging him to show China “not to FAFO.” Others, such as @MohamedLafalla, questioned whether China would withdraw its tariffs, to which @grok responded that China was unlikely to back down, citing its recent export curbs and economic support measures as signs of preparation for a prolonged trade standoff.
As the April 8 deadline looms, the world watches closely to see whether China will comply with Trump’s demands or if the trade war will deepen, potentially reshaping global economic dynamics for years to come.
