(CTN News) – On Monday, President Donald Trump raised tariffs on China, sparking concerns that his economic stabilization efforts may become a trade war.
Trump warned on social media after China threatened economic retaliation last week.
Truth Social says China would face 50% tariffs on April 9 if it doesn’t cease its 34% business increase by April 8, 2025. China will never propose meeting again!
Continued Trump tariffs on Chinese goods will reach 104%.
The 20% and 34% fentanyl trafficking taxes from last week would rise. If US prices rise, China may export cheaper goods and boost commerce.
Trump has not dropped tariffs or calmed markets despite corporate and financial protests. Trump will veto a Senate bill that needs legislative approval for any tariffs, the White House said Monday. Republican support for Trump’s import taxes will survive economic and political turmoil.
The Dow Jones Industrial Average fell 750 points, or 2%, before lunch Monday. The Nasdaq Composite fell 1.2% and S&P 500 1.5%. The false rumor that Trump will cancel tariffs buoyed markets in the morning. Shares fluctuated, upsetting investors who wanted favorable news.
The White House called suspension “false information”. Despite economic concerns, the Republican president says his tariffs boost local and foreign trade.
“Show strength, courage, and patience, and greatness will ensue!” was his Truth Social headline.
He blamed “our former ‘leaders’ for permitting this” and other nations for “exploiting the Good Ol’ USA.” Trump requested the Fed to cut rates. On Friday, Fed Chair Jerome Powell warned that tariffs could raise inflation and that “there’s considerable waiting and observing occurring, including by us.”
According to CME Group’s FedWatch, the Fed will lower rates four times this year, choosing job losses and a weaker economy above inflation. Trump attended a Saudi-sponsored Miami golf outing Thursday night. Former Mar-a-Lago resident golfing at two nearby estates.
He told Air Force One reporters the Sunday drive video helped him win a club title that night.
Trumps: “There are benefits to winning.” Have you heard I won?
On a turbulent global market, he opposed tariff reduction.
“Sometimes you have to give medicine to solve a problem,” Trump stated.
Goldman Sachs predicts a recession despite tariffs. Financial tightness, overseas consumer boycotts, and regulatory uncertainty cause a financial institution to predict a horrific recession that will limit capital investment more than expected.
Due to “significant opportunities” abroad, EU Commission head Ursula von der Leyen said the EU would prioritize trade with non-US countries.
Trump said he talked trade with Ishiba. On Truth Social, he said “we import millions of their cars” and “they have treated the U.S. very poorly regarding trade.”
He warned Trump he is “deeply apprehensive” tariffs could delay the biggest Japanese investment in five years. Calling it a “national crisis,” he said his administration will negotiate tariffs with Washington.
Peter Navarro, White House trade adviser, believes countries must decrease tariffs and modify tax and regulatory structures to agree.
“Think about Vietnam,” he told CNBC. ‘We will cut tariffs,’ but emphasize non-tariff violations. Trump hosted the Dodgers at the White House on Monday to celebrate their World Series win. afternoon Netanyahu presser.
Trump seeks unity after his difficult first term. His support is undermined by economic uncertainty.
On Sunday, hedge fund investor Bill Ackman called Commerce Secretary Howard Lutnick “indifferent to the stock market and the economy’s decline”. He argued bonds helped Lutnick’s Cantor Fitzgerald.
Ackman regretted Monday but opposes Trump’s tariffs.
Add, “I am frustrated to see what I believe to be a major policy misstep taking place after our country and the president have made significant economic progress, which is now threatened by the tariffs.”
On Fox News, White House economic adviser Kevin Hassett advised Ackman to “moderate his rhetoric.” Other nations will “shoulder the burden of the tariffs,” he said.
The weekend saw Musk, Trump’s main government reform advocate and billionaire, voice tariff fears. Musk worries tariffs will affect Tesla. Musk told Italian authorities in a video conference that the US and Europe should create a zero-tariff free trade zone.
He stated, “That has definitely been my advice to the president.”
Navarro said Fox News Musk “lacks comprehension” of the subject.
“He sells cars,” Navarro. “He does.” He stated, “He is just protecting his own interests, like any businessman would.”
SOURCE: AP
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