104% tariff: Trump threatens China with higher levy, following retaliatory tariff by Beijing

US President Donald Trump warned of steep tariff hikes on China unless it drops retaliatory taxes on US goods.

The additional levy could leave certain US companies having to pay 104 per cent tax to import Made-in-China products.

Trump’s threat

President Donald Trump threatened to impose an additional 50 per cent tariff on Chinese goods if Beijing does not lift its 34 per cent retaliatory tariffs on US products.

The new tariffs, now up to 104 per cent in total, could take effect as soon as Tuesday, April 9, according to the White House.

Markets tumble as tensions, White House denies pause

The White House on Monday dismissed reports that former President Donald Trump is mulling a 90-day pause on tariffs, labeling the speculation as “fake news.”

The denial comes amid intensifying global trade tensions that have sent financial markets into a tailspin.

U.S. markets opened sharply lower for a third consecutive session, with investors reacting to the uncertainty surrounding Trump’s aggressive tariff policies, which many say are stalling global trade and investment flows.

The turbulence was felt across the globe.

Major stock indexes in Asia — including Singapore, Australia, Japan, South Korea, and India — all posted significant losses in overnight trading. The ripple effect has now reached Europe, where concerns over retaliatory measures are growing.

European Commission President Ursula von der Leyen responded with a measured tone, saying the EU remains open to negotiations with the U.S. on tariffs.

EU countermeasures

However, she warned that the bloc is also preparing countermeasures, signaling that Europe will not stand idle in the face of escalating protectionism.

Investor and longtime Trump supporter Bill Ackman added to the alarm, warning that the US could be headed toward an "economic nuclear winter" if the current tariff policies continue unchecked.

Fear grows

The statement reflects growing fears within the business community that trade restrictions could choke economic growth and push the country toward recession.

Meanwhile, tensions flared on social media between Elon Musk, head of DOGE and Tesla, and Peter Navarro, a key Trump trade advisor.

The two traded barbs online, clashing over the merits and consequences of free trade versus economic nationalism. Navarro defended the tariffs as necessary tools to rebalance trade relationships, while Musk criticized them as economically destructive.

Hardline stance

Despite the growing backlash, Commerce Secretary Howard Lutnick reaffirmed the administration’s hardline stance, stating that tariffs will remain in place for “days and weeks,” further dimming hopes of a quick resolution.

Adding a diplomatic angle to the day’s events, Trump is scheduled to meet Israeli Prime Minister Benjamin Netanyahu at the White House — a close political ally amid global uncertainty.

The high-profile meeting is expected to project strength and unity, even as economic anxieties deepen.

With markets jittery and global leaders on edge, all eyes are on the White House for what comes next in the high-stakes tariff standoff.

Market reactions

US markets showed sharp declines following the announcement, signaling investor concerns over escalating trade tensions.

The FTSE 100 dropped significantly, hitting its lowest level in a year, while European and Asian markets also saw steep losses, with some enduring the worst drops in decades.

Trump’s call for patience

Despite the market turmoil, Trump urged Americans to remain patient, warning against "weak" or "stupid" responses to the trade standoff. He emphasized his long-term strategy for economic pressure on China.

Impact on UK businesses

In the UK, Prime Minister Keir Starmer highlighted the strain tariffs impose on businesses, particularly manufacturers like Jaguar Land Rover, BBC reported.

Starmer vowed to provide robust support to UK companies caught in the middle of the trade dispute.