Emma Haslett
Journalist
Getty images
Donald Trump threatened China with an additional 50% rate on goods imported into the United States if it does not withdraw a counter-measure that it announced on Friday.
In an article on his social media platform, Truth Social, the American president said that he would present the additional rate unless China is withdrawing his own 34% counter-tail on American products, which he announced on Friday.
Trump initially imposed a 34% tax on Chinese imports last Wednesday, when he announced prices on dozens of American business partners.
If it requires the additional 50%, US companies will pay a total rate of 104% in Chinese imports.
In his article on Truth Social, Trump said that China had introduced its countermeasure “despite my warning that any country that retaliates against the United States by issuing additional prices … will immediately be met with new prices and significantly higher”.
The climbing of tensions between the United States and China has increased fears of a world trade war. Prices will be a major blow for Chinese manufacturers, for which the United States is a key market for exports.
The uncertainty around prices led to a turbulent day in the world’s stock markets.
The European markets have closed lower after the Asian shares indices took place, the Hang Kong Hang Seng index dropped by more than 13%, its greatest fall of a day since 1997.
Negotiations
Trump’s post also said that countries’ rate negotiations “are starting to take place immediately”.
Trump should meet the head of Israel, Benjamin Netanyahu, later in the day. It is believed that the prices are among the subjects that the two will discuss.
The American president also posted earlier than Japan sent a negotiation team to discuss prices.
And Ursula von der Leyen, the president of the European Commission, offered Trump a “zero rate” agreement – although she previously declared that she had not excluded reprisals.
“We are also ready to respond by countermeasures and defend our interests,” she said.
