Trump Threatens 50% Tariff on Chinese Imports Amid Escalating Trade Dispute | Arabian Post

President Donald Trump has announced plans to impose an additional 50% tariff on Chinese goods starting April 9, escalating tensions in the ongoing trade dispute between the United States and China. This move comes in response to Beijing’s recent implementation of a 34% tariff on U.S. imports, which was itself a countermeasure to earlier U.S. tariffs.

The administration’s decision has sent shockwaves through global financial markets. The S&P 500 entered bear market territory, reflecting investor concerns over a potential global recession. In Asia, the Shanghai Composite Index fell over 6%, while the Hang Seng Index dropped more than 10% during Monday morning trading.

In response to the U.S. tariffs, Chinese policymakers are preparing “extraordinary efforts” to mitigate their economic impact. Measures under consideration include potential monetary and fiscal policy easing, such as cutting policy interest rates and allowing for a higher budget deficit. Beijing also plans to stimulate domestic consumption and stabilize capital markets.

The European Union and Canada have also been drawn into the fray. The EU is preparing new tariffs while keeping open the possibility of negotiations. Previously, the EU had planned to impose duties of up to 50% on American goods such as whiskey, motorcycles, and bourbon, with an initial implementation delayed to mid-April. Canada has pledged additional countermeasures beyond earlier tariffs, which included a 25% levy on approximately $42 billion worth of U.S. goods, including produce, appliances, liquor, steel, and aluminum products.

Japanese Prime Minister Shigeru Ishiba has criticized the U.S. tariff policy and is seeking continued dialogue to resolve the escalating tensions. Meanwhile, Israeli Prime Minister Benjamin Netanyahu became the first foreign leader to meet with President Trump seeking exemptions from the tariffs.