Updated Story: 4.45 PM (GMT+8), 2.24 PM IST
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China has vowed to stand firm against the United States in the ongoing trade conflict, making it clear that it will not submit to what it calls American "blackmail." On Tuesday, the Chinese government stated it would "resolutely take countermeasures" if President Trump follows through with his threat to impose a 50% tariff on Chinese goods.
A spokesperson for the Chinese Commerce Ministry criticized the U.S. for attempting to "blackmail" China, following Trump's post on Truth Social, where he warned that the additional tariffs would go into effect on Wednesday unless Beijing withdrew the 34% tariffs it had placed on American products by Tuesday.
In response, the spokesperson called the U.S. threat "a mistake on top of a mistake" and firmly declared, "China will never accept this."
Trump's post accused China of engaging in "long-term trading abuses" and stated that if Beijing did not remove the tariffs, "all talks with China concerning their requested meetings with us will be terminated!"
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Updated Story: (6.40 AM, 21.10 EDT)
Despite mounting concerns over market instability and global economic uncertainty, President Donald Trump on Monday dismissed the idea of delaying his upcoming tariff hikes. With the new trade measures set to kick in Wednesday, Trump emphasized that the US is pressing ahead.
&ldquo;We&rsquo;re not considering a delay,&rdquo; he told reporters, adding that other nations have the option to negotiate better trade terms with the United States. &ldquo;Many countries are coming forward to strike deals,&rdquo; Trump said. &ldquo;They&rsquo;ll be fair&mdash;and in some cases, those countries will face significant tariffs.&rdquo;
The president&rsquo;s unwavering stance contributed to another rocky day on Wall Street. The Dow Jones Industrial Average dropped 349 points, or 0.91%, to close at 37,965.60. The S&amp;P 500 dipped 0.23% to 5,062.25, while the Nasdaq Composite managed a modest gain of 0.10%, ending at 15,603.26.
Investor sentiment was weighed down by fears of a slowing economy and persistent inflation, with trade tensions adding fuel to the fire. Trump&rsquo;s suggestion that further tariffs on China remain on the table only deepened concerns about the direction of global trade and its impact on growth.
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News Published: 22.10 IST, 1.40 PM EDT
In the middle of a deepening global financial rout, the Trump administration received its first diplomatic reprieve Monday as the European Union signalled a preference for negotiations rather than immediate retaliation over Washington&rsquo;s steep new tariffs.
Despite growing international backlash, President Trump doubled down late Monday. In a surprise escalation, he threatened to slap&nbsp;new 50% tariffs on Chinese imports&nbsp;unless Beijing lifts its retaliatory duties on US goods&nbsp;by tomorrow.
The EU&rsquo;s move, coming after weeks of market carnage, marks the first formal opening for dialogue since the&nbsp;US triggered a fresh wave of protectionist measures, sending shockwaves through global trade and financial systems.
Despite the EU&rsquo;s unexpected tilt toward diplomacy&mdash;indicating it will delay imposing retaliatory tariffs on select American goods for now&mdash;the gesture wasn&rsquo;t enough to calm global markets. After major sell-offs across Asia and Europe, US markets also opened sharply lower, reflecting investors' fading hopes of a near-term resolution to the escalating trade war.
Market Mayhem Continues Despite Diplomatic Signal
On Monday, Wall Street responded with a rare burst of optimism when rumours of a potential tariff delay briefly surfaced, sparking a powerful midmorning rally that saw the S&amp;P 500 jump 7% in just over 30 minutes. But the gains evaporated almost as quickly as they appeared after White House officials reaffirmed there would be&nbsp;no 90-day pause&nbsp;in the new tariff schedule. Selling quickly resumed, dragging major indices back into the red.
By the close, the S&amp;P 500 had dropped 3.2%, officially entering bear market territory. The Nasdaq Composite shed 3.9%, while the Dow Jones Industrial Average was also down 3.2%. It marked the third consecutive trading day of 2% or more declines, as investor confidence continues to be eroded by uncertainty over the future of global trade.
Across the Atlantic, European markets bore the brunt of the anxiety, having opened deep in negative territory and struggling to recover even modest ground. The Euro STOXX 50 index ended down 5.27%, while the broader STOXX 600 lost 5.15%. National indices echoed the rout: France&rsquo;s CAC 40 dropped 3.78%, Germany&rsquo;s DAX slid 3.47%, and the UK&rsquo;s FTSE 100 closed 3.90% lower. Southern European markets fared even worse, with Spain&rsquo;s IBEX 35 plunging 5.75% and Italy&rsquo;s FTSE MIB down 5.66%.
Global Fallout from Tariff Escalation
The ripple effects were already visible in Asia earlier Monday, where markets closed sharply lower as investors absorbed the scale of the unfolding trade conflict between the world&rsquo;s two largest economies. China, which had ended last week promising "firm and comprehensive retaliation," reiterated on Monday its intent to respond forcefully to the US tariffs, though specific countermeasures have yet to be detailed.
The most recent round of tariffs, announced by President Trump just days earlier, includes a sweeping 20% import duty on industrial goods from major trading partners. The move has intensified fears of a prolonged trade war, adding to volatility and further chilling business sentiment.
EU Offers &ldquo;Zero-for-Zero&rdquo; Deal as Off-Ramp
Seeking a diplomatic off-ramp, the European Union formally proposed a&nbsp;&ldquo;zero-for-zero&rdquo;&nbsp;tariff solution on industrial goods, an approach it has successfully pursued with other global partners. European Commission President Ursula von der Leyen stated, &ldquo;Europe is always ready for a good deal. So we keep it on the table.&rdquo; Her comments came alongside Norway&rsquo;s Prime Minister Jonas Gahr St&oslash;re, highlighting the broad European consensus around finding a resolution through negotiation.
The EU has not entirely ruled out retaliation. Officials confirmed that tariffs on selected American imports will be prepared for implementation next week if progress stalls. However, for now, Brussels appears willing to de-escalate tensions, aiming to avoid further economic fallout at a time when Europe&rsquo;s own growth is already fragile.
Japan Voices Concern, Pushes for Dialogue
The reverberations of Washington&rsquo;s tariff stance have extended far beyond the Atlantic. Japanese political heavyweight Shigeru Ishiba revealed that he had a direct phone conversation with President Trump, urging a reassessment of the US policy.
&ldquo;I&rsquo;ve told the president that Japan has been the biggest investor in the United States for five straight years,&rdquo; Ishiba said, warning that the tariffs could damage the investment capacities of major Japanese firms operating in the US Despite expressing disappointment, Ishiba noted that both sides agreed to continue constructive talks.
Trade War Outlook: Relief or Just a Pause?
While the EU&rsquo;s shift in tone offers a glimmer of hope, markets remain unconvinced that a breakthrough is imminent. The Trump administration has shown no signs of backing down, and China's stance has hardened. Meanwhile, businesses worldwide brace for higher input costs, disrupted supply chains, and shrinking export opportunities.
With trillions already erased from global markets and fears of recession quietly mounting&mdash;despite White House dismissals&mdash;any sign of softening rhetoric offers only temporary relief. For now, the trade war continues to cast a long shadow over the world economy.

US president threatens 50% additional Tariffs on China

EU open to tariff talks; US warns China of potential 50% hike in duties

China Vows All-Out Fight Against U.S. Trade Pressure

EU open to tariff talks; US warns China of potential 50% hike in duties

April 7, 2025 | 22:10 IST