President Donald Trump threatened more tariffs on China on Monday, raising new concerns that his rebalancing of the global economy could lead to a trade war.
His threat from Trump on social media comes after China said it would retaliate against U.S. tariffs announced last week.
“If China does not withdraw its 34% growth by tomorrow, April 8, 2025, then on April 9, the United States will impose an additional 50% tariff on China,” he wrote, “He will start on April 9.” “In addition, all negotiations with China regarding their request to meet with us will be terminated!
Trump remains provocative as stock markets continue to decline, concerns about the recession.
“Be strong, brave, patient, and greatness will be the result!” he wrote.
As trading on Monday morning began, the Dow Jones industrial average fell by 1,200 points, and the S&P 500 is expected to enter a bear market, meaning a 20% drop from its recent high. Even some of Trump's allies have raised alarms about economic damage, and financial forecasts show that there is more pain for U.S. businesses, consumers and investors.
The Republican president insists that his tariffs are necessary to rebalance global trade and rebuild domestic manufacturing. He accused other countries of “utilizing the good America!” about international trade, saying, “Our past 'leaders' allow this.” He saw China as “the biggest abuser for all” and criticized Beijing for increasing its own tax rates of retaliation.
Trump also called on the Fed to lower interest rates. Fed Chairman Jerome Powell warned Friday that tariffs could increase inflation, saying: “There is still a lot to wait and see, including us, before any decision is made.”
According to CME Group's FedWatch, investors expect the U.S. central bank has lowered its benchmark interest rate by at least four times by the end of the year, a sign that concerns about inflation will be overshadowed by fears of layoffs and economic declines.
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Trump spent a weekend in Florida and arrived Thursday night to compete in his Miami golf course for Saudi-funded competition. He lives in Mar-a-Lago, a private club in Palm Beach, and plays golf on two nearby properties.
On Sunday, he posted a video saying he played a driving game and took a reporter on the Air Force that night, where he won the club championship.
“It's a good thing to win,” Trump said. “You heard I won, right?”
He also said he would not back down on tariffs despite turmoil in global markets.
“Sometimes, you have to take medication to solve some problems,” Trump said.
Goldman Sachs has released a new forecast that a recession is more likely even if Trump traces back from tariffs. The financial firm said economic growth will slow down significantly, “sharp tightening under financial conditions, foreign consumer boycotts and the continued rise in policy uncertainty may exceed our previously assumed capital expenditures.”
European Commission President Ursula von der Leyen said the EU will focus on trade with other countries outside the United States, saying there are “huge opportunities” elsewhere.
Trump said he spoke with Japanese Prime Minister Shigeru Ishiba to start trade negotiations. He complained to the Truth Society “they treated America very poorly in terms of trade” and “they didn’t take our cars, but we took millions.”
Ishiba said he told Trump that he was “very worried” that tariffs would block investment in Japan, the largest U.S. investor in the past five years. He described the situation as a “national crisis” and said his administration would negotiate with Washington, urging Trump to reconsider the tariffs.
White House trade adviser Peter Navarro suggested that the state needs to do more than lower its own tariff rates to reach a deal, but also said they must make structural changes to the tax and regulatory code.
“Let's ride in Vietnam,” he said on CNBC. “When they come to us and say, 'We're going to sign zero tariffs', it doesn't make much sense to us because it's irrelevant cheating.”
On Monday, the president plans to welcome the Los Angeles Dodgers to the White House to celebrate their World Series victory. He also met with Israeli Prime Minister Benjamin Netanyahu, who is expected to hold a joint press conference in the afternoon.
Trump has struggled for a unified front after the chaotic infighting of his first term. However, economic turmoil exposed some fractures within his different league of supporters.
Hedge fund manager Bill Ackman slammed “indifferent to the stock market and the economic collapse” on Sunday after Commerce Secretary Howard Lutnick. He said before joining the Trump administration, Cantor Fitzgerald, a financial company led by Lutnick, made immediate profits from bond investments.
Ackman apologized for his criticism on Monday but reiterated his concerns about Trump’s tariffs.
He wrote on X: “Looking at me that I think it is a major policy mistake, my country and the president are in danger due to tariffs after great economic progress.”
Kevin Hassett, the White House's top economic adviser, told Fox News that Ackman should “reduce his rhetoric.”
He insists that other countries (not the United States) “will bear the brunt of tariffs.”
Trump has expressed doubts over tariffs over the weekend that billionaire Elon Musk, the top adviser to the federal government overhaul, said he was skeptical of the tariffs. Musk said the tariffs would increase the cost of his electric car maker Tesla.
“I hope that Europe and the United States, in my opinion, should both Europe and the United States adopt a zero tariff situation and effectively establish a free trade zone between Europe and North America,” Musk said in a video conference with Italian politicians.
He added: “This is certainly my advice to the president.”
Navarro later told Fox News that Musk “doesn't understand” the situation.
“He sells cars,” Navarro said. “That’s his job,” he added. “He just protects his own interests like any business person.”
___ Associated Press writer Mari Yamaguchi contributed to Tokyo.
