Trump Threatens China With 50% Additional Tariffs If Xi Jinping’s Administration Fails To Lift Duties By Tuesday, Warns Termination Of Talks

President Donald Trump took umbrage with China’s retaliation and threatened to impose a new 50% tariff if the country does not lift its duties on U.S. exports by Tuesday. 

Trump took to his social media platform Truth Social to issue an ultimatum to Xi Jinping’s administration on Monday and threatened China that it would face consequences unless it rescinded its 34% retaliatory tariffs on U.S. products.

He also noted that all meetings requested by China in this regard will be “terminated” if the country does not withdraw its tariff order.

“Negotiations with other countries, which have also requested meetings, will begin taking place immediately,” he added.

Trump’s threat comes at a time when his reciprocal tariff order has led to a rout in global equity markets. Analysts at Goldman Sachs hiked the odds of a recession in the U.S. to 45% from 35% earlier. This was the second hike in a week, from the initial expectation of 20%.

The tariff wars have already caused the tech-heavy Nasdaq Composite index to plunge into recession territory, and the S&P 500 is inching closer to joining it.

‘Magnificent 7’ stocks, including Trump ally Elon Musk’s Tesla Inc. (TSLA), Nvidia Corp. (NVDA), and Apple Inc. (AAPL), among others, have witnessed a trillion-dollar-plus erosion of market capitalization, estimated to be over $1.8 trillion last week, according to CNBC.

The SPDR S&P 500 ETF Trust (SPY), which mirrors the S&P 500 index, was down 1.6% at the time of writing.

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