Markets worldwide take another dive as Trump threatens higher tariffs on China
WASHINGTON — Global markets plummeted Monday for the third consecutive trading day since President Donald Trump announced his “Liberation Day” tariffs — and the administration gave mixed signals on meeting other nations at the negotiating table.
U.S. stocks reacted positively to a short-lived, incorrect report amplified on social media that Trump may pause the tariffs for 90 days, but the market plunged quickly when the White House dismissed the claim as “FAKE NEWS.”
Any upward progress was erased upon Trump’s announcement that he planned to further punish China starting Wednesday.
At about 11:15 a.m. Eastern Trump threatened to raise tariffs on China a further 50 percent if the country does not back down on its retaliatory 34-percent tax on U.S. imports by Tuesday. If left unresolved, the latest U.S.-China trade war will hit American farmers, particularly soybean producers.
Writing on his platform Truth Social, Trump said “Additionally, all talks with China concerning their requested meetings with us will be terminated! Negotiations with other countries, which have also requested meetings, will begin taking place immediately.”
The administration maintains more than 50 countries have reached out to negotiate.
U.S. Treasury Secretary Scott Bessent wrote on X that Trump has tasked him to negotiate with Japan, which could face a 24-percent levy beginning Thursday.
“Japan remains among America’s closest allies, and I look forward to our upcoming productive engagement regarding tariffs, non-tariff trade barriers, currency issues, and government subsidies. I appreciate the Japanese government’s outreach and measured approach to this process,” Bessent wrote on the social media platform.
“China has chosen to isolate itself by retaliating and doubling down on previous negative behavior,” Bessent added.
European Union’s stance
Meanwhile, European Commission President Ursula von der Leyen said she has offered the U.S. zero-for-zero tariffs on industrial goods.
“But we are also prepared to respond through countermeasures and defend our interests,” von der Leyen said Monday at a press conference.
Trump slapped a 20-percent tax on goods from the EU, set to take effect Thursday, on top of 25-percent tariffs on steel and aluminum that began in mid-March. A 25-percent tariff on all foreign cars imported to the U.S. also launched Thursday.
The EU is poised to impose retaliatory duties on American products in response to the import taxes. The bloc of 27 nations is scheduled to vote Wednesday on a list of U.S. goods to be taxed at its borders.
When asked by reporters in the Oval Office Monday if the EU offer was enough to scale back the tariffs, Trump said “No, it’s not.”
Journalists had gathered in the Oval Office for Trump’s meeting with Israeli Prime Minister Benjamin Netanyahu, who visited to discuss Trump’s new 17-percent tax on his country’s imports.
Netanyahu promised to “eliminate” his country’s trade deficit with the U.S.
“We intend to do it very quickly. We think it’s the right thing to do and we’re going to also eliminate trade barriers, a variety of trade barriers that have been put up unnecessarily. And I think Israel can serve as a model for many countries who ought to do the same,” Netanyahu said.
When asked by reporters if he intends to lower the tariffs on Israel, Trump said, “Maybe not.”
“We give Israel billions of dollars a year,” he added.
The meeting was streamed on C-SPAN.
‘Let’s take the deal’
Two Republican senators publicly urged Trump on social media to take the EU offer.
Sen. Mike Lee of Utah wrote, “Let’s take that deal! Much to gain.”
“Totally agree,” Sen. Ron Johnson of Wisconsin replied. “At some point you have to take YES for an answer.”
Another Senate Republican, Ted Cruz of Texas, has publicly criticized Trump’s steep levies on almost every nation around the globe.
A bipartisan effort to claw back power from the president’s near-unilateral authority to impose tariffs might not get far, despite the economic uncertainty unleashed since Trump unveiled his “Liberation Day” plan.
Legislation co-sponsored by Democrat Maria Cantwell of Washington and Republican Chuck Grassley of Iowa would require the president to notify lawmakers prior to new tariffs from the White House and limit the levies to a 60-day window unless Congress approves an extension.
Senate Majority Leader John Thune of South Dakota seemed to shut down the idea Monday, according to reporters on Capitol Hill.
“I don’t think that has a future. The president has indicated he will veto it. I don’t see how they get it to the floor on the House,” Thune told Politico.
A companion bill in the House is sponsored by Republican Rep. Don Bacon of Nebraska.
Chances of House Speaker Mike Johnson bringing the bill to the floor are likely slim, as the Louisiana Republican supported Trump’s tariff unveiling in person last week.
Last updated 5:50 p.m., Apr. 7, 2025
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