Donald Trump Threatens China With Additional 50% Tariffs If Retaliatory Levies Not Withdrawn

US President Donald Trump has threatened an additional 50% tariff on China, barely a week after hitting the Asian manufacturing powerhouse with 34% additional levies on all imports.

The fresh warning from Trump comes after China struck back at the US with 34% retaliatory tariffs on all American imports.

Trump said he would proceed ahead with the additional duties on China if the latter does not withdraw the 34% retaliatory duties on US imports by Tuesday, April 8.

"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 (sic)," Trump posted on Truth Social.

"Additionally, all talks with China concerning their requested meetings with us will be terminated! Negotiations with other countries, which have also requested meetings, will begin taking place immediately," he added.

The US president further reiterated that any country that retaliates against the US 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.

The total US-China bilateral trade in goods added up to $582.4 billion as of 2024, according to US Trade Representative. The country has the highest trade deficit with China than any other country. The trade deficit was at $295.4 billion last year.

Chinese shares and corporate bonds on Monday plunged while sovereign yields neared an all-time low amid the fall-out of a spiraling trade conflict between the world's two largest economies.

The onshore CSI 300 dropped as much as 7.6%, its biggest decline in over five years, according to Bloomberg. Hong Kong's Hang Seng Index and a separate gauge of Chinese shares listed in the city were both on track for their worst day since the global financial crisis, according to Bloomberg.

The flight from risk cut across all sectors and markets, with all 50 members on the Hang Seng China Enterprises Index in the red.

A gauge of Chinese tech stocks in Hong Kong fell more than 15%, putting it on track for a bear market. Chinese issuers were among the names leading losses in Asia on Monday, with spreads on some their investment-grade bonds widening more than 30 basis points, according to traders, Bloomberg reported.