Trump says He Would Impose a New Tax on China of 50%
Despite concerns that his trade agenda could cause an economic slump, President Donald Trump threatened to impose a fresh 50% tax on China, which caused US equities to fluctuate during a tumultuous trading session on Monday.
“The United States will impose additional tariffs on China of 50%, effective April 9, if China does not withdraw its 34% increase above their already long-standing trading abuses by tomorrow, April 8, 2025,” Mr. Trump tweeted on social media.
As part of a larger tariff announcement that also included a uniform 10% levy on all nations and more severe penalties for others, he levied an additional 34% penalty on Chinese goods last week, scheduled for Wednesday. In connection with the trafficking of fentanyl, he has also imposed a special 20% tax on China.
The Dow Jones Industrial Average dropped more than 1,700 points early in the day before dropping 349.26 points, or 0.91 percent. The Nasdaq Composite was up 0.10 percent, but the S&P 500 closed 0.23 percent lower after briefly approaching bear market territory. The Russell 2000 small-cap fell 0.92 percent.
The price of gold dropped 1.19 percent to $2,999.10 an ounce, while the yield on the 10-year Treasury increased by almost 21 basis points to 4.21 percent.
Since Mr. Trump announced the tariffs last week, the world’s markets have been in a tailspin. The higher retaliatory tariffs are scheduled to begin this Wednesday, while his uniform tariff went into force last Wednesday.
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