President Trump escalated the US-China trade war Monday, threatening 50% tariffs on Chinese goods, effective April 9th.
This followed China’s planned 34% tariffs on US products, set for Thursday.
Trump criticized China’s retaliation, vowing further action if they didn’t back down. Combined, potential tariffs could exceed 100%.
Global markets plummeted, with Hong Kong’s stock market suffering its worst drop in nearly 30 years.
Wall Street experienced volatile trading, initially rallying on hopes of a tariff pause, then sinking as those hopes were dashed.
Tokyo and Frankfurt also saw significant losses, reflecting widespread investor panic. Trillions of dollars in market value have evaporated.
Trump urged Americans to “Be Strong, Courageous, and Patient,” while scrapping planned talks with China.
He asserted the US would negotiate with willing nations.
The EU discussed retaliatory measures, with France advocating aggressive options, while Ireland cautioned against targeting services.
Economists warned of potential inflation and recession.
JPMorgan Chase CEO Jamie Dimon predicted the tariffs would likely raise inflation and slow growth.
Analysts warned of vanishing global demand and a looming recession. Senator Ted Cruz, a Trump ally, expressed concern about job losses and inflation.
Israeli Prime Minister Netanyahu, facing 17% tariffs, met with Trump amidst the escalating trade tensions.
