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U.S. President Donald Trump has warned China of a 50% tariff on its goods if it does not remove its new 34% tax on American products. He gave Beijing a Tuesday deadline to cancel its tariffs or face severe economic penalties. This sharp exchange comes as trade tensions between the world’s two biggest economies continue to grow, sending shockwaves through global markets.

China and U.S. Clash Over Trade Tariffs

President Trump made the threat on social media, demanding that China withdraw its retaliatory tariff. Beijing had announced a 34% tax on U.S. imports on Sunday. This was a response to Trump’s earlier move to impose the same rate on Chinese goods.

Trump’s latest action falls under his broader “Liberation Day” policy. It includes a minimum 10% tariff on most goods from other major trading nations. The goal, Trump says, is to create fairer trade deals for the U.S.

China Pushes Back, Accuses U.S. of Economic Pressure

China strongly rejected Trump’s demand. Its embassy in Washington accused the U.S. of “economic bullying” and promised to protect its national interests.

If the U.S. follows through on the 50% tax, total duties on Chinese imports could climb to 104%. This figure includes a 20% tariff introduced in March and the recent 34% added last week.

A spokesperson for the Chinese embassy said that pressure and threats would not affect China’s policy. “Reciprocity is being used as a cover for selfish actions,” the official said, calling the U.S. measures examples of unilateralism and economic coercion.

Tariff Moves Cause Market Volatility

Markets around the world reacted sharply to the latest developments. On Monday, U.S. stocks opened lower. European markets dropped more than 4%. In Asia, Hong Kong’s Hang Seng index fell by over 13% — its biggest one-day loss since 1997.

On Tuesday, some global markets showed signs of recovery. Several Asian exchanges opened stronger. But uncertainty remains, with investors worried about a deeper trade conflict.

Indexes like Germany’s DAX, the UK’s FTSE 100, Japan’s Nikkei, and the U.S. S&P 500 have all been affected.

High Stakes for Global Trade

Trump’s tariffs could hit China hard, especially its top exports to the U.S. These include electronics, machinery, computers, furniture, and vehicles. In return, the U.S. sends products like aircraft, pharmaceuticals, farm goods, and heavy equipment to China.

Trump explained that the U.S.’s large debt — currently around $36 trillion — is one reason for these steps. He added that the U.S. would not delay other planned tariffs and that trade talks with China are now on hold.

He stressed that the focus is on protecting American jobs and interests. Countries that respond with tariffs, he warned, will face harsher countermeasures.

Rising Diplomatic Activity Around the World

While the dispute with China grows, Trump said new talks will begin with other countries affected by the tariffs.

On Monday, Israeli Prime Minister Benjamin Netanyahu visited the White House. He promised to work quickly to fix the trade imbalance between Israel and the U.S. Israel is now facing a 17% tariff under the “Liberation Day” plan, starting April 9.

Japan also plans to send a team to begin trade talks, Trump announced earlier.

In Europe, Commission President Ursula von der Leyen suggested a “zero-for-zero tariff” deal. But she added that the EU would respond if needed to protect its own trade interests.

Trump replied with sharp criticism, saying the EU was built to harm the U.S. economy and prevent fair trade.

A Turning Point in Global Trade?

The growing trade war between the U.S. and China is already shaking global markets. Trump’s demand for tariff removal and China’s firm stance point to a long standoff.

Whether these tensions will lead to new deals or further conflict is still unclear. But one thing is certain: the world’s economy is now feeling the pressure of each decision made in Washington and Beijing.