United States President Donald Trump said on Monday he would impose an additional 50 percent tariff on goods imported from China if Beijing does not withdraw retaliatory tariffs against the United States.
"Also, all talks with China regarding the meetings they have requested with us will be terminated! Negotiations with other countries, which have also requested meetings, will begin immediately," Trump said in a post on Truth Social.
Last week, Trump imposed 34 percent tariffs on Chinese goods. The tariffs are part of a broader move that has seen the US impose tariffs on most of its trading partners.
On April 4, Beijing retaliated against new US tariffs by imposing an additional 34 percent tariff on American goods, a move that represents an escalation in the trade war between the world's two largest economies.
China's Commerce Ministry also said it would impose more controls on exports of rare earth minerals, which are used in high-tech products such as computer chips and electric vehicle batteries.
Trump's latest threat of 50 percent tariffs further rattled global financial markets, which had been falling steadily since Trump's announcement last week.
A base tariff of 10 percent went into effect on all imports into the US market on Saturday, and tariffs on some countries that could reach as much as 50 percent are expected to take effect on Wednesday.
US stocks temporarily halted their decline after a report that Trump was considering a 90-day pause on tariffs, but the decline resumed after the White House called the report "fake news."
Investors fear that the tariffs that Trump announced last week could lead to rising prices, falling demand and, potentially, a global recession.
Elon Musk, the world's richest man and a close ally of Trump in efforts to cut government spending, said on Saturday he hopes to see zero tariffs between the U.S. and Europe.
On Monday, he posted on social media a video of economist Milton Friedman praising the international trading system.
Investors and political leaders are still unsure whether Trump's tariffs are part of a new permanent regime or a negotiating tactic to extract concessions from other countries.
Some are concerned, however, that a retaliatory tariff from Europe risks bringing even higher tariffs on European exporters./ REL (A2 Televizion)
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