US President Donald Trump said he has no plans to suspend tariffs to facilitate trade negotiations, calling this the country's only chance to rebuild its industrial base. He warned that if China does not roll back its 34% retaliatory tariffs on US goods, Washington will slap an additional 50% tariff on Chinese imports, raising the total rate to 104%.
According to Reuters and Bloomberg, Trump said the broad tariff strategy is meant to revive US manufacturing, which he claims has been eroded by decades of free trade. Markets, however, are increasingly worried that rising global trade barriers could trigger a worldwide recession.
Trump added that if China does not reverse its tariff actions by April 8, the US will implement the additional duties on April 9. He also said all meetings or negotiations initiated by Beijing would be canceled.
Beijing struck a defiant tone. Liu Pengyu, spokesperson for the Chinese Embassy in the US, said Trump's threats reflect unilateralism, protectionism, and economic bullying. He argued that pressuring China is not an appropriate basis for bilateral engagement and said Beijing will firmly defend its interests and respond if the US acts unilaterally.
China reiterated that trade wars produce no winners and that protectionism is a dead end. It urged the US to drop all trade-related pressure and resolve disputes through fair and equal dialogue.
EU proposes 25% retaliatory tariff on US goods
The European Commission (EC) has proposed a 25% retaliatory tariff on US products such as soybeans, nuts, and sausages in response to Washington's tariffs on steel and aluminum.
The proposal will be put to a vote among the EU's 27 member states on April 9. If passed, some tariffs will take effect on May 16, with the remainder slated for December 1.
In parallel, the EU tightened its steel import safeguards on April 1, targeting a 15% reduction in volumes. The Commission is also weighing import quotas on aluminum products.
EC Commissioner for Trade and Economic Security Maros Sefcovic said the expected economic hit from the new measures would be lower than the earlier EUR26 billion (approx. US$28.45 billion) estimate. He noted that bourbon, wine, and dairy products had been removed from the updated list.
Sefcovic also said the EU aims to resume negotiations with the US promptly, reiterating its long-term objective of securing a zero-tariff deal.
Still, some EU nations fear that strong retaliation could prompt even tougher US responses. German automaker Audi, for example, has suspended customs clearance for vehicles arriving at US ports after April 2 due to the 25% auto tariff.
Beyond China and the EU, the US is also preparing to launch trade talks with Japan, led by Treasury Secretary Scott Bessent. He previously said that over 50 countries have expressed interest in starting tariff negotiations with Washington.
Article edited by Jack Wu
