Trump issues ultimatum to China: Withdraw retaliatory tariffs or face 50% more

US President Donald Trump - File Photo

US President Donald Trump on Monday threated China with huge additional tariffs if it did not withdraw its retaliation plans, adding Washington would begin negotiations with other countries if they wish.

"If China does not withdraw its 34 percent increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50 percent, effective April 9th," Trump said in a Truth Social post.

He added that "all talks with China concerning their requested meetings with us will be terminated."

But "negotiations with other countries, which have also requested meetings, will begin taking place immediately," Trump wrote on his Truth Social platform.

Wall Street stocks were mixed late Monday morning amid talk that the market could be bottoming out after huge losses prompted by US President Donald Trump's sweeping tariffs announcements.

After opening sharply lower, stocks briefly spiked into positive territory following an erroneous report that the White House was considering a 90-day tariff pause.

Equity markets have been in free fall since Trump's announcement Wednesday unveiling sweeping tariffs on trading partners that were far more impactful than markets expected.

However, Trump has remained defiant as the stock market continued plunging and fears of a recession grew. “Be Strong, Courageous, and Patient, and GREATNESS will be the result!” he wrote.

The Dow Jones Industrial Average dropped 1,200 points as trading began on Monday morning, and the S&P 500 was on track to enter a bear market, which means falling 20% from a recent high. Even some of Trump's allies are raising alarms about the economic damage, and financial forecasts suggest more pain on the horizon for U.S. businesses, consumers and investors.

Beijing announced last week its own 34-percent tariff on US goods, which will come into effect on Thursday.

The move pushed Trump to chastise China for not heeding "my warning for abusing countries not to retaliate" as he called Beijing "the biggest abuser of them all" on tariffs.

But Chinese vice commerce minister Ling Ji said the tit-for-tat duties "are aimed at bringing the United States back onto the right track of the multilateral trade system."

"The root cause of the tariff issue lies in the United States," Ling told representatives of US companies on Sunday.