(Bloomberg) — President Donald Trump threatened to slap additional 50% import taxes on China, while readying negotiations with Japan and Israel, leaving markets struggling to grasp his intentions for his sweeping tariff plans.
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Stocks swung wildly on Monday as Trump posted a series of social media messages on talks with trading partners, and volatility spiked even more after an erroneous report about the president’s willingness to consider a blanket tariff pause, which the White House denied.
The through line was Trump’s signal he is willing to use carrots with nations taking a conciliatory approach and sticks on those vowing retaliation. Whether that will result in scaling back his baseline 10% tariff announced last week — or relief for the roughly 60 nations the president tagged with even higher levies — remains to be seen.
The US president since last week has bashed China over its plans to respond to his 34% charge with an equal duty, and on Monday he escalated his threats.
“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 posted on social media.
The 50% charge would come on top of the 34% duty the president imposed on all Chinese imports — set to begin Wednesday — as well as a 20% levy that he put in place earlier tied to fentanyl trafficking, according to a White House official. That could have a seismic effect on the price of imports from the US’s third-largest trading partner.
The Chinese embassy in Washington did not immediately respond to a request for comment.
Trump’s comment marked the latest sign he is digging in his heels over his plan to impose duties on virtually all US trading partners. A baseline 10% tariff went into effect Saturday and higher levies on dozens of trading partners are due to go into place at 12:01 a.m. Wednesday.
Earlier: Xi Switches to Fight Mode as Trump Trade Deal Looks Unlikely
Separately, the White House issued a veto threat on a bipartisan bill in the Senate that would limit the president’s authority to impose tariffs.
“If passed, this bill would dangerously hamper the President’s authority and duty to determine our foreign policy and protect our national security,” the White House said in a message to lawmakers. The threat was first reported by Axios.
Still, an expected selloff appeared blunted by two factors: growing belief that the Federal Reserve could step in to lower interest rates, and signals from the White House that despite some aides’ insistence there was no room for negotiations on the tariffs, Trump himself would engage in dealmaking.
US stocks wiped out a 4% drop to rise more than 3%, then turned negative again before paring losses, as investors reacted to the swirl of news related to Trump’s tariff plans.
“The message is simple, for those who are ready to take a seat at the negotiating table and recognize that they will no longer be able to mistreat America, please come and join us,” the White House said in a social media post. “For those who want to retaliate after years of ripping this country off, we will not bend and we will not break.”
But aides gave contradictory guidance as they looked to frame the president’s moves on Monday.
White House adviser Peter Navarro, one of Trump’s most protectionist allies, wrote in the Financial Times that the president’s team “will want to hear from countries including Cambodia, Mexico and Vietnam” they will stop allowing Chinese goods to be shipped to the US through their countries, but also that “this is not a negotiation.”
Stephen Miran, who chairs the Council of Economic Advisers, defended the tariffs in a Monday statement as a form of “burden sharing” for other nations benefitting from US economic and military largesse, saying, “it’s a must not only for fairness, but for feasibility.”
Trump himself said Japanese Prime Minister Shigeru Ishiba agreed in a phone conversation to hold Cabinet-level negotiations over the president’s plan to impose a 24% across-the-board duty on Japan’s exports to the US.
“Tough but fair parameters are being set” for a negotiation over the tariffs, Trump said, adding that “they have treated the U.S. very poorly on Trade.”
“It all has to change, but especially with CHINA!!!,” the president continued.
Treasury Secretary Scott Bessent said later Monday he would lead those talks for the US along with Trade Representative Jamieson Greer.
“I appreciate the Japanese government’s outreach and measured approach to this process. China has chosen to isolate itself by retaliating and doubling down on previous negative behavior,” Bessent posted on X.
Trump and Israeli Prime Minister Benjamin Netanyahu also plan to discuss tariffs later Monday during a White House meeting. Israel took down tariffs on US goods ahead of the president’s April 2 announcement, only for Trump to go ahead with 17% duties on Israeli products.
The same negotiations Trump dangled for Japan and Israel won’t take place with China if its government doesn’t withdraw its plan for retaliatory tariffs, the US president said.
“All talks with China concerning their requested meetings with us will be terminated!” Trump said. “Negotiations with other countries, which have also requested meetings, will begin taking place immediately.”
–With assistance from James Mayger, Courtney McBride and Gregory Korte.
(Updates with comments from Navarro, Miran and Bessent starting in 14th paragraph, markets in 11th paragraph)
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