Tue Apr 08 01:30:00 UTC 2025: ## Trump’s Tariff Threat Sparks Global Market Turmoil, China Vows to Fight Back
**HONG KONG/SINGAPORE** – Global markets are reeling after US President Donald Trump threatened to impose an additional 50% tariff on all Chinese imports, potentially raising the total tariff to 104%. This dramatic escalation in the US-China trade war has sent shockwaves through the global economy, prompting strong reactions from Beijing and other nations.
China’s Ministry of Commerce vehemently rejected Trump’s threat, calling it “blackmail” and vowing to fight back to the end. Analysts warn that this could trigger an all-out trade war between the world’s two largest economies. Many Asian markets opened higher today, attempting to recover from yesterday’s losses, but several key markets including Taiwan and Thailand experienced significant drops. European markets closed down over 4% yesterday.
The threatened 104% tariff would impact nearly all Chinese imports into the US, potentially crippling China’s export sector. While some key strategic items, like pharmaceuticals and semiconductors, have been exempted in previous rounds, the vast majority of goods are now subject to the enormous levy.
Several other countries are also feeling the pressure. Bangladesh, a major clothing exporter to the US, has requested a three-month pause to the tariff increase to facilitate its plan to boost US exports to the country. Vietnam, another major beneficiary of companies relocating from China, is also set to be severely impacted. Its Prime Minister Pham Minh Chinh has pledged to increase purchases of US goods, including security and defense products, to mitigate the blow. Similar efforts are underway in Thailand and Indonesia, with both countries pledging increased US imports to attempt to assuage the effects of the tariffs.
Trump’s claim of a $1 trillion US trade deficit with China has been disputed; the actual figure for 2024 was just over $295 billion. Experts widely agree that the tariff increases will likely hurt global economic growth and further complicate international trade. The uncertainty surrounding Trump’s actions has increased volatility in global stock markets, as companies grapple with unpredictable costs and investment decisions.
China has responded by pledging support for its financial markets, with four state-owned firms committing to billions of dollars in share purchases. The country’s financial regulator is also planning to increase the proportion of insurance funds invested in the stock market.
The escalating trade conflict is further complicated by Trump’s previous tariff actions, which already impacted around two-thirds of goods sent from China to the US before the latest round of threats. The long-term economic implications of this trade war remain uncertain, but analysts predict significant and potentially lasting pain for the global economy.
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