On Monday, markets veered off course as a direct result of the fallout from President Donald Trump’s stringent tariffs placed on U.S. trade partners. Early Monday morning, after Trump told investors there was nothing to panic over, he threatened to increase tariffs against China on Wednesday if Beijing did not withdraw retaliatory tariffs it had placed on the U.S. by late Tuesday night. According to a White House official, Trump’s new tariffs would be in addition to the 34% tariff Trump announced last week, plus the 20% already in place, making the total of potential tariffs 104%.
European Union Wants To Negotiate
President of the European Commission Ursula von der Leyen spoke on Monday, sharing that the country is ready to negotiate with the White House on tariffs. “Indeed, we have offered zero-for-zero tariffs for industrial goods, as we have successfully done with many other trading partners because Europe is always ready for a good deal,” she said. “We are also prepared to respond through countermeasures and defend our interests, but prefer to have a negotiated solution.”
China Calls Trump’s Tariffs Bullying
On Monday, China criticized Trump’s tariff policies, calling his actions an “abuse” that “gravely undermines the rules-based multilateral trading system and disrupts global economic order and stability.” Chinese Foreign Ministry spokesperson Lin Jian added, “The Chinese government strongly condemns and firmly opposes such actions. The U.S. approach is a typical act of unilateralism, protectionism, and economic bullying, which causes harm to others while backfiring on itself.”
50% Additional Tariffs
If Beijing does not back away from the retaliatory tariffs it has placed on the U.S., Trump says he will increase current tariffs. Trump used Truth Social to share that “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. 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,” Trump added.
Trump: Tariffs Worth Billions
Trump also used Truth Social to promote his administration’s economy, claiming that interest rates, oil prices, and other prices were down. He claimed without providing any evidence that “the long-time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place.”
Tariffs Will Increase Inflation
Jamie Dimon, the JP Morgan Chase CEO, penned a letter to investors that was made public on Monday that raised serious concerns about the way Trump’s tariffs “will affect America’s long-term economic alliances. The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,’ he wrote.“And even with the recent decline in market values, prices remain relatively high,” he added.Â
On Monday, Trump made it clear that he has no intention of pulling back the reins on his tariff plans. He stated that he would not give up any control related to implementing them. Â With an unstable market, Trump has threatened to veto any legislation that limits his authority.Â
