Loh Huey Xin, Author at Goody Feed

US President Donald Trump has threatened to impose an additional 50 per cent tariff on Chinese imports if China does not withdraw its retaliatory tariffs against the United States by 8 Apr 2025. According to White House officials, this would push the total tariff on Chinese goods to 104 per cent. The 78-year-old president posted on his Truth Social platform: "If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th." Trump added that "all talks with China concerning their requested meetings with us will be terminated" and that "negotiations with other countries, which have also requested meetings, will begin taking place immediately." The escalation comes after Trump initially set a 20 per cent tariff on Chinese imports, followed by an additional 34 per cent announced on 2 April 2025, which the White House dubbed "Liberation Day." This brought the total to 54 per cent. In response, China unveiled its own 34 per cent duties on US goods scheduled to take effect on 10 Apr. Chinese vice-commerce minister Ling Ji stated that these retaliatory duties "are aimed at bringing the United States back onto the right track of the multilateral trade system." "The root cause of the tariff issue lies in the United States," Ling told representatives of US companies on 6 Apr. Market Chaos and Global Economic Fears The intensifying trade war has triggered a dramatic selloff in global markets, raising fears of an international recession. Hong Kong's stock market collapsed by 13.2 per cent on 7 Apr, marking its worst day in nearly three decades. Tokyo closed down by almost eight per cent, while Frankfurt fell as much as 10 per cent in early trading before recovering some losses. Wall Street experienced significant volatility, briefly bouncing into positive territory on hopes of a 90-day pause in tariffs, only to sink lower when the White House dashed those expectations. Trillions of dollars have been wiped off combined stock market valuations in recent sessions, with Bitcoin also tumbling while the dollar rebounded after sharp losses last week. Trump urged Americans minutes before Wall Street opened: "Don't be Weak! Don't be Stupid! Be Strong, Courageous, and Patient, and GREATNESS will be the result!" JPMorgan Chase CEO Jamie Dimon warned that the tariffs "will likely increase inflation" in a letter to shareholders. "Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth," he added. Stephen Innes at SPI Asset Management offered a bleaker assessment: "The market's telling you in plain language: global demand is vanishing, and a global recession is on the cards and coming on fast." Even US Senator Ted Cruz, a staunch Trump loyalist, warned of a jobs crunch and rising inflation that could threaten Republican control of Congress. Widespread Tariffs and International Responses Trump's tariff policy extends beyond China, with a 10 per cent "baseline" tariff on US imports from around the world taking effect on 5 Apr. Higher duties will hit many countries from 9 Apr, including 20 per cent for European Union products and 10 per cent for Singapore. Singapore's Deputy Prime Minister Gan Kim Yong stated that the city-state will not take retaliatory measures but will instead meet with US counterparts to resolve any concerns the Trump Administration may have. EU trade ministers gathered in Luxembourg on 7 Apr to discuss the bloc's response. French Trade Minister Laurent Saint-Martin advocated for a comprehensive approach, stating: "We must not exclude any option on goods, on services" and that the 27-nation bloc should "open the European toolbox, which is very comprehensive and can also be extremely aggressive." Germany and France have proposed targeting US tech giants with taxes, though Ireland, whose low corporate tax rate has attracted US tech companies, expressed concern that targeting services "would be an extraordinary escalation," according to Irish Trade Minister Simon Harris. Israeli Prime Minister Benjamin Netanyahu, whose country faces 17 per cent tariffs despite being one of Washington's closest allies, was scheduled to become the first leader to meet with Trump since the tariff announcement.