Trump threatens more tariffs on China as global markets shudder over how much pain economy can take

WASHINGTON — Undeterred by a panicked stock market, President Donald Trump threatened additional tariffs on China on Monday, raising fresh concerns that his drive to rebalance the global economy could intensify a financially destructive trade war.

Trump's threat, which he delivered on social media, came after China said it would retaliate against U.S. tariffs he announced last week.

''If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,'' Trump wrote on Truth Social. ''Additionally, all talks with China concerning their requested meetings with us will be terminated!''

The U.S. president has shown few signs of backing down on tariffs despite the mounting pressure in the financial markets. His commitment to tariffs could have devastating effects for the global economy, even though Trump is banking that U.S. voters' patience with him will ultimately pay off with manufacturing jobs.

Asked Monday if he would consider a pause on tariffs that have threatened the global economy, Trump said, ''We're not looking at that.'' The U.S. president said he was open to negotiations ''if we can make a really fair deal and a good deal for the United States.'' Trump added that it's possible to have both negotiated settlements with other countries and permanent tariffs.

Even as Israel's Prime Minister Benjamin Netanyahu said his country would take its tariffs against U.S. goods to zero, Trump was noncommittal about removing the new import taxes placed on an ally. The White House also said Monday that Trump would veto a Senate bill that would mandate congressional approval for new tariffs, a bet that the critical mass of Republican lawmakers will loyally back him despite the economic and political risks.

If Trump implements his new taxes on imports from China, U.S. tariffs on Chinese goods would reach a combined 104%. The new taxes would be on top of the 20% tariffs announced as punishment for fentanyl trafficking and his separate 34% tariffs announced last week. Not only could that increase prices for American consumers, it could give China an incentive to flood other countries with cheaper goods and seek deeper relationships with other trading partners.

After selloffs on the prior two days of trading, the Dow Jones Industrial Average on Monday fell another 0.9%. The S&P 500 slumped 0.2%, and the Nasdaq composite was down a slight 0.1%.

Trump frequently bragged about stock market gains during his first term, and the threat of losses on Wall Street was viewed as a potential guardrail on risky economic policies in his second term. But that hasn't been the case, and Trump has described days of financial pain as necessary.

''I don't mind going through it because I see a beautiful picture at the end,'' he said.

Trump officials have frequently appeared on television to make the case for his policies, but none of their explanations have calmed the markets. The only improvement came from a false report that top economic adviser Kevin Hassett said Trump was considering a pause on all tariffs except for China. Stock prices spiked before the White House denied it was true by calling the post ''fake news.''

The Republican president has remained defiant despite fears that he could be pushing the U.S. toward a recession, insisting that his tariffs are necessary for rebuilding domestic manufacturing and resetting trade relationships with other countries.

But his aggressive push has scrambled U.S. economic policy. Even though inflation remains elevated, Trump has called on the Federal Reserve to lower its benchmark interest rates that were increased to constrain price increases.

On Friday, Federal Reserve Chair Jerome Powell warned that the tariffs could increase inflation, and he said ''there's a lot of waiting and seeing going on, including by us,'' before any decisions would be made.

Goldman Sachs issued a new forecast Sunday saying a recession has become more likely even if Trump backtracks from his tariffs. The financial firm said economic growth would slow dramatically ''following a sharp tightening in financial conditions, foreign consumer boycotts, and a continued spike in policy uncertainty that is likely to depress capital spending by more than we had previously assumed."

European Commission President Ursula von der Leyen said the European Union would focus on trade with other countries besides the United States, saying there are ''vast opportunities'' elsewhere.

Trump said he spoke with Japanese Prime Minister Shigeru Ishiba to start trade negotiations. He complained on Truth Social ''they have treated the U.S. very poorly on Trade'' and ''they don't take our cars, but we take MILLIONS of theirs.''

Ishiba said he told Trump that he's ''strongly concerned'' that tariffs would discourage investment from Japan, which has been the world's biggest investor in the U.S. in the past five years. He described the situation as a ''national crisis'' and said his government would negotiate with Washington to urge Trump to reconsider the tariffs.

White House trade adviser Peter Navarro suggested countries would need to do much more than simply lower their own tariff rates to reach deals, an indication that talks could be a drawn-out process.

''Let's take Vietnam," he said on CNBC. ''When they come to us and say, ‘We'll go to zero tariffs,' that means nothing to us because it's the non-tariff cheating that matters.''

On Monday, Trump welcomed the Los Angeles Dodgers to the White House to celebrate their World Series victory. He also met with Israeli Prime Minister Benjamin Netanyahu, who said his country would remove tariffs and other trade barriers in the aftermath of Trump putting 17% taxes on imports from Israel.

''Israel can serve as a model for many countries who ought to do the same,'' Netanyahu told the U.S. president.

Trump said he appreciated ''very much'' what Netanyahu had said. But when asked if he would remove the tariffs, Trump said ''maybe not'' because of the aid that the United States provides to Israel. The U.S. had a $7.4 billion trade deficit in goods last year with Israel, according to the Census Bureau.

Trump has strived for a united front after the chaotic infighting of his first term. However, the economic turbulence has exposed some fractures with his mix of Wall Street and blue-collar supporters.

Bill Ackman, a hedge fund manager, lashed out at Commerce Secretary Howard Lutnick on Sunday as ''indifferent to the stock market and the economy crashing.''

On Monday, Ackman apologized for his criticism claiming that Lutnick, previously the head of the financial firm Cantor Fitzgerald, could benefit from the tariffs because of its bond investments. But the hedge fund manager also reiterated his concerns about Trump's tariffs.

''I am just frustrated watching what I believe to be a major policy error occur after our country and the president have been making huge economic progress that is now at risk due to the tariffs," he wrote on X.

Billionaire Elon Musk, a top adviser to Trump on overhauling the federal government, expressed skepticism about tariffs over the weekend. Musk has said that tariffs would drive up costs for Tesla, his electric automaker.

''I hope it is agreed that both Europe and the United States should move ideally in my view to a zero tariff situation, effectively creating a free trade zone between Europe and North America,'' Musk said in a video conference with Italian politicians.

He added, ''That certainly has been my advice to the president.''

Navarro later told Fox News' ''Sunday Morning Futures'' that Musk ''doesn't understand'' the situation.

''He sells cars,'' Navarro said. ''That's what he does.'' He added, ''He's simply protecting his own interests as any business person would do.''

___ Associated Press writer Mari Yamaguchi contributed from Tokyo.

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