Trump threatens extra 50% tariff on China; Beijing reacts
What's the story
China has promised to "fight to the end" after United States President Donald Trump threatened an additional 50% tariff on its imports.
The Commerce Ministry slammed the US's proposed "reciprocal tariffs," calling them "a mistake on top of a mistake."
"If the US escalates its tariff measures, China will...take countermeasures to safeguard its own rights and interests," it said.
The ministry also stated that it seeks "dialogue" with the US and that "there are no winners in a trade war."
Market impact
Trump's tariff threat could trigger trade war
The US President's warning came after China announced it would retaliate against US tariffs he unveiled last week.
Beijing had responded on Friday with its own 34% tariffs on all American imports, as well as other measures such as export limits on rare earth materials and trade restrictions on certain US corporations.
Tariff escalation
Trump threatens to terminate talks with China
Reacting to China's countermeasure, Trump wrote on Truth Social, "If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th."
All negotiations with China on their requested meetings would also be canceled, he threatened.
If these new tariffs come into place, total US tariffs on Chinese goods would reach a staggering combined rate of 104%!
Economic implications
Trump's tariff threat could lead to price hikes
The proposed new taxes would be on top of the 20% tariffs levied in retaliation for fentanyl trafficking and a separate 34% tariff that was announced last week on "Liberation Day."
It could lead to price hikes for American consumers and possibly drive China to export lower-cost goods to other countries.
It could also cultivate closer relations with other trading partners, particularly the European Union.
Impact
Markets worldwide have plunged
The tariffs could deal a severe blow to Chinese manufacturers, who rely on the US as a key export market.
China's key exports to the US are electrical products and other machinery, computers, furniture, toys, automobiles, and equipment, while the US's key exports to China include oilseeds and grains, aircraft, machinery, and pharmaceuticals.
But the uncertainty over tariffs has caused a rocky day on global stock markets.
Since Trump's announcement of global tariffs, markets around the world have tumbled.