By John Meyer, consultant in financial affairs – Eurasia Business News, April 7, 2025. Article No 1475.
President Donald Trump has threatened to impose an additional 50% tariff on imports from China unless Beijing withdraws its retaliatory 34% tariff on U.S. goods. This escalation in the trade war between the U.S. and China has heightened fears of a global recession and has significantly impacted financial markets worldwide.
Tariff Threat: Trump announced that if China does not remove its 34% tariff on U.S. products by April 8, 2025, the U.S. will impose an additional 50% tariff on Chinese imports starting April 9.
Current Tariff Levels: If implemented, the total tariff on Chinese goods entering the U.S. would reach approximately 104%, including existing tariffs.
Market Impact: The threat has led to significant declines in stock markets, with major indices experiencing substantial losses. The Dow Jones Industrial Average and S&P 500 have seen historic drops, while the Nasdaq has entered a bear market.
Global Reactions: Other countries, including Canada, have responded by lodging complaints with the World Trade Organization or considering countermeasures.
Diplomatic Efforts: Despite the tensions, Trump has left room for negotiations with other nations, such as the European Union, on reducing tariffs.
The European Union has expressed its readiness to negotiate with the United States. European Commission President Ursula von der Leyen stated that the EU is open to a “zero-for-zero” tariff arrangement for industrial goods, a strategy they have successfully implemented with other trading partners.
Economic and Political Implications:
Trade War Escalation: The ongoing trade tensions between the U.S. and China have raised concerns about economic stability and the potential for a global recession.
Trump said on April 2 that the U.S. was going to be “charging a discounted reciprocal tariff” because the U.S. is kind. For China, the U.S. is levying a 34% tariff, then for Europe “we’re going to charge them 20%” and Japan 24%. U.S. President gave the list of more than a dozen countries. New tariffs are effective on April 9. Now, tariffs on China could reach 104%.
In response to the new US tariffs, the State Council of the People’s Republic of China announced the introduction of additional duties of 34% on all goods from the United States, which will take effect from April 10.
“We do not provoke trouble, but we are not afraid of trouble either, pressure and threats are the wrong way to interact with China, China has already taken and will continue to take resolute measures to protect its sovereignty, security and development interests,” the Chinese government said in a statement on April 5.
Consumer Impact: Tariffs are typically passed on to consumers in the form of higher prices, which could lead to increased inflation.
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Geopolitical Tensions: The situation has heightened geopolitical tensions, with other countries watching closely and considering their own responses to protect their economic interests.
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© Copyright 2025 – Eurasia Business News. Article no. 1475.
Eurasia Business News 