President Donald Trump’s response to a tanking stock market Monday was to threaten China with a 50 percent tariff increase.
Trump said he will impose the additional duty if Beijing does not withdraw its own retaliatory tariffs against the U.S. by a Tuesday deadline.
The president also threatened that “all talks with China concerning their requested meetings with us will be terminated” if the retaliatory tariffs are not removed.
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Imports from the country will be taxed at a rate of 104 percent if the new tariffs are put in place, as China already had among the steepest tariff rates put in place by the Trump administration.
Trump said the latest round of tariffs, if implemented, will go into effect Wednesday.
The White House has been heavily scrutinized over its tariffs, which are blamed as the reason the S&P 500 suffered its largest three-day drop since “Black Monday” in 1987.
Even Elon Musk, arguably the biggest figure of MAGA 2.0 behind Trump, has expressed opposition to a baseline 10 percent tariff on most of the world. Perhaps driving the Tesla CEO to speak out is that his company, which is reliant on importing vehicle parts for manufacturing, has seen its stock price nosedive in the last week.
Trump revealed in his China announcement he would “immediately” begin negotiations with other countries regarding their tariffs, but he offered no further details.
Trump and his acolytes have had mixed messaging on the goal of tariffs. The White House—and Trump himself—have at times described the duties as being a longterm solution to keep the U.S. from being ripped off by allies and adversaries alike.
Republicans in Congress, however, have said the tariffs are a bargaining chip for their “Art of the Deal” leader to negotiate more U.S.-friendly trade agreements.
Regardless of the duties’ end goal, millions of Americans are feeling the fallout in their retirement accounts. The Trump administration has claimed that those nearing retirement aren’t concerned with the latest downturn, however.
“I think they don’t look at the day-to-day fluctuations,” Treasury Secretary Scott Bessent said Sunday.
Trump struck a similar tone on Monday, calling on his MAGA allies—like the billionaire Bill Ackman—to stop panicking.
“The United States has a chance to do something that should have been done DECADES AGO,” he posted Monday morning. “Don’t be Weak! Don’t be Stupid! Don’t be a PANICAN (A new party based on Weak and Stupid people!). Be Strong, Courageous, and Patient, and GREATNESS will be the result!”
