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WASHINGTON: President Donald Trump on Monday threatened to impose additional tariffs n China. The US-China tussle has raised concerns that his effort to balance the global (global) economy could spark a trade war. Trump’s threat, which he made on social media, came after China said it would retaliate against US tariffs announced last week. According to AP news, he wrote on Truth Social – If China does not withdraw the 34% increase on top of its already long-term trade abuses by April 8, 2025, the United States will impose an additional tariff of 50% on China, effective April 9. Also, all negotiations with China regarding their requested meetings with us will be terminated!
Call on Federal Reserve to reduce interest rates
Trump has also called on the Federal Reserve to reduce interest rates. On Friday, Federal Reserve Chairman Jerome Powell warned that tariffs could increase inflation, and he said that we are also waiting and observing a lot before making any decision. According to CME Group’s FedWatch, investors expect the US central bank to cut its benchmark interest rates at least four times by the end of this year, indicating that inflation concerns will be overshadowed by fears of layoffs and a shrinking economy.
Trump stuck to his word
According to the news, Trump stuck to his word despite the stock market continuing to fall and fears of recession increasing. Trump wrote – Be strong, courageous and patient, and great results will happen. As soon as trading started on Monday morning, the Dow Jones Industrial Average fell by 1,200 points and the S&P 500 was on its way to entering a recession.
That would represent a 20% drop from recent highs. Even some of Trump’s allies are expressing concern about the economic damage, and financial forecasts suggest even more trouble lies ahead for American businesses, consumers and investors.
