Donald Trump threatens more tariffs on China as global markets plunge
Washington, Apr 7 (AP): President Donald Trump threatened additional tariffs on China on Monday, raising fresh concerns that his drive to rebalance the global economy could lead to a trade war.
Trump's threat, which he delivered on social media, came after China said it would retaliate against US tariffs announced last week.
“If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” he wrote on Truth Social. "Additionally, all talks with China concerning their requested meetings with us will be terminated!"
Trump has remained defiant as the stock market continued plunging and fears of a recession grew.
“Be Strong, Courageous, and Patient, and GREATNESS will be the result!” he wrote.
The Dow Jones Industrial Average dropped 1,200 points as trading began on Monday morning, and the S&P 500 was on track to enter a bear market, which means falling 20% from a recent high. Even some of Trump's allies are raising alarms about the economic damage, and financial forecasts suggest more pain on the horizon for U.S. businesses, consumers and investors.
The Republican president has insisted his tariffs are necessary to rebalance global trade and rebuild domestic manufacturing. He accused other countries of “taking advantage of the Good OL' USA!” on international trade and said “our past leaders' are to blame for allowing this.” He singled out China as “the biggest abuser of them all” and criticized Beijing for increasing its own tariffs in retaliation.
Trump also called on the Federal Reserve to lower interest rates. On Friday, Federal Reserve Chair Jerome Powell warned that the tariffs could increase inflation, and he said “there's a lot of waiting and seeing going on, including by us,” before any decisions would be made.
Investors expect the U.S. central bank to cut its benchmark interest rates at least four times by the end of this year, according to CME Group's FedWatch, a sign that concerns about inflation will be eclipsed by fears of layoffs and a shrinking economy.
Trump spent the weekend in Florida, arriving on Thursday night to attend a Saudi-funded tournament at his Miami golf course. He stayed at Mar-a-Lago, his private club in Palm Beach, and golfed at two of his properties nearby.
On Sunday, he posted a video of himself hitting a drive, and he told reporters aboard Air Force One that evening that he won a club championship.
“It's good to win,” Trump said. "You heard I won, right?”
He also said that he wouldn't back down from his tariffs despite the turmoil in the global markets.
“Sometimes you have to take medicine to fix something," Trump said.
Goldman Sachs issued a new forecast saying a recession has become more likely even if Trump backtracks from his tariffs. The financial firm said economic growth would slow dramatically “following a sharp tightening in financial conditions, foreign consumer boycotts, and a continued spike in policy uncertainty that is likely to depress capital spending by more than we had previously assumed."
European Commission President Ursula von der Leyen said the European Union would focus on trade with other countries besides the United States, saying there are “vast opportunities” elsewhere.
Trump said he spoke with Japanese Prime Minister Shigeru Ishiba to start trade negotiations. He complained on Truth Social “they have treated the U.S. very poorly on Trade” and “they don't take our cars, but we take MILLIONS of theirs.”
Ishiba said he told Trump that he's “strongly concerned” that tariffs would discourage investment from Japan, which has been the world's biggest investor in the U.S. in the past five years. He described the situation as a “national crisis” and said that his government would negotiate with Washington to urge Trump to reconsider the tariffs.
White House trade adviser Peter Navarro suggested countries would need to do much more than simply lower their own tariff rates to reach deals, saying they would have to make structural changes to their tax and regulatory codes.
“Let's take Vietnam," he said on CNBC. “When they come to us and say, We'll go to zero tariffs,' that means nothing to us because it's the non-tariff cheating that matters.”
On Monday, the president is scheduled to welcome the Los Angeles Dodgers to the White House to celebrate their World Series victory. He's also meeting with Israeli Prime Minister Benjamin Netanyahu, and they're expected to hold a joint press conference in the afternoon.
Trump has strived for a united front after the chaotic infighting of his first term. However, the economic turbulence has exposed some fractures within his disparate coalition of supporters.
Bill Ackman, a hedge fund manager, lashed out at Commerce Secretary Howard Lutnick on Sunday as “indifferent to the stock market and the economy crashing.” He said Cantor Fitzgerald, the financial firm led by Lutnick before he joined the Trump administration, stood to profit because of bond investments.
On Monday, Ackman apologized for his criticism but reiterated his concerns about Trump's tariffs.
“I am just frustrated watching what I believe to be a major policy error occur after our country and the president have been making huge economic progress that is now at risk due to the tariffs," he wrote on X.
Top White House economic adviser Kevin Hassett told Fox News Channel that Ackman should “ease off the rhetoric a little bit.”
He insisted that other countries, not the United States, are “going to bear the brunt of the tariffs.”
Billionaire Elon Musk, a top adviser to Trump on overhauling the federal government, expressed scepticism about tariffs over the weekend. Musk has said that tariffs would drive up costs for Tesla, his electric automaker.
“I hope it is agreed that both Europe and the United States should move ideally in my view to a zero tariff situation, effectively creating a free trade zone between Europe and North America,” Musk said in a video conference with Italian politicians.
He added, “That certainly has been my advice to the president.”
Navarro later told Fox News that Musk “doesn't understand” the situation.
“He sells cars,” Navarro said. “That's what he does.” He added that, “He's simply protecting his own interests as any business person would do.”
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“Full prepared..going to win,” Congress MP KC Venugopal ahead of Kerala polls
EC not functioning as a neutral institution: Venugopal
Congress MP K. C. Venugopal on Monday raised concerns over the election schedule announced by the Election Commission of India for the upcoming Kerala Assembly election, questioning the timing of the poll dates and alleging that the schedule leaves limited time for campaigning.
Speaking to news agency ANI in Delhi after the poll panel announced elections in five states and Union Territories, Venugopal said that the Congress and the United Democratic Front (UDF) are fully prepared for the elections and confident of victory. At the same time, he questioned the pattern of dates announced by the Election Commission.
“We are fully prepared, we are going to win the elections... You can see how the Election Commission has set the dates. The first phase of elections is on the 9th, nominations are due until the 23rd, scrutiny is on the 24th, nominations can be withdrawn until the 26th, and after that, there are 11 days for campaigning,” he said.
“As for Kerala, there is Easter and Good Friday in the first week...The Election Commission could have announced the dates earlier... The counting date is on May 4th, so what was the point of holding elections in Kerala so early? What is their intention behind holding elections on the same day in Kerala, Puducherry, and Assam?... We are confident that we will win, but the people of the country are seeing the biased attitude of the Election Commission...,” he added.
He further stated that his party was ready for elections irrespective of the dates announced by the poll body.
“We are going to win the election. India's strategy has been set up. And we are all ready for winning this election. But one thing as far as declaring election, even though they are giving only for five days, we are going to win the election. We have no problem,” he said.
Detailing the poll schedule while questioning the time available for campaigning, he stated, “but you can see the pattern of date which the election commission announced. Yesterday they declared election, and today they notified us. The first phase of election on April 9th, filing of nomination will be over on the 23rd of this month, 24th scrutiny, 26th withdrawal of nomination. After 26, four plus seven, 11 days campaign.”
“As far as Kerala is concerned, April first week is a holy week. The holiday week means, Good Friday is there. Nobody will do anything on Good Friday. Easter is the big festival. These festivals are natural, you have to see that. Among the 11 days, working days, two, three days will go for holidays. Then hardly seven, eight days for campaigning in this election for candidates,” the Congress MP questioned.
The Congress leader said the Election Commission could have announced the dates earlier if there was a need for an early election schedule.
Questioning the urgency behind placing Kerala in the first phase of polling, he added that the counting date is much later.
“Which is the date of counting? Fourth May. Then what is the urgency of putting Kerala in the first phase without giving sufficient time for candidates? And putting Kerala, Puducherry, Assam together, what is the intention behind that?” Venugopal questioned.
He also alleged that the Election Commission was not functioning as a neutral institution.
“The Election commission is completely losing that capacity as a neutral player. You can see 14 of our prime minister's programs over and on the 15th they announce the election, 16th notification comes,” he said.
Venugopal further stated that such tactics would not affect the Congress’ prospects in the election.
“They think that this type of techniques and tactics, because of these techniques and tactics, UDF is going to lose, and Congress is going to lose. This is their complete dream only. This is not going to happen. We are very much confident at any cost, whether they are not giving any time also, we are going to win the election,” he said.
“But the people of India are watching this. The tricks of the election commission. To restrict the campaign, people of India are watching. This I want to bring into the notice of the nation. That's all,” Venugopal said.
The Election Commission of India on Sunday announced the schedule for the Kerala Assembly election. Polling in the state will be held in a single phase on April 9 while the counting of votes is scheduled to take place on May 4.
