Heaptalk, Jakarta — China’s measure to impose 34% retaliatory duties on U.S. goods has drawn a fierce response from U.S. President Donald Trump, who demanded that Beijing revoke the additional duties (04/07).
If China refuses, Trump warned he would slap an additional 50% tariff on U.S. imports from China by April 9, 2025, as reported by Reuters. Beijing’s 34% tariff hike—a direct response to Trump’s earlier 34% reciprocal duties—has intensified the trade war between the world’s two largest economies.
Global markets extended losses for a third consecutive day, with investors fearing that aggressive trade barriers in the world’s biggest consumer market could trigger a recession. The S&P 500 closed lower after a volatile session, hitting its lowest level over a year.
Last week, Trump announced a reciprocal tariff policy of at least 10% on all U.S. imports, with rates targeted up to 50%. He defended his tariff strategy as revitalizing America’s industrial base, which he argues has eroded due to decades of trade liberalization.
Prioritizing trade deals with allies
“It’s the only chance our country will have to reset the table. Because no other president would be willing to do what I’m doing, or even go through it. I don’t mind going through it because I see a beautiful picture at the end,” Trump told reporters at the White House, hours after escalating tensions with China.
Scott Bessent, the U.S. Treasury Secretary, met with Trump in Florida (04/06), as reported by Politico, to urge the president to prioritize trade deals with allies. Bessent aimed to reassure markets that the U.S. strategy has an endgame.
The administration also plans to launch trade talks with Japan, a key Asian ally, while dozens of other countries have reportedly reached out to avoid the 50% tariffs that will take effect this Wednesday. The escalating retaliatory duties have further rattled global financial markets, which have been in freefall since Trump’s initial tariff announcement.
