China condemned U.S. “blackmail” after President Donald Trump threatened to double down on tariffs amid a deepening trade war. In response to China’s reciprocal duties, Trump proposed raising tariffs on Chinese imports to over 100%.
"The U.S. threat is a mistake on top of a mistake," China’s commerce ministry said. "If the U.S. insists, China will fight to the end."
The conflict has rattled global markets, though some stabilized after sharp drops. Chinese exporters are already feeling the pinch, reconsidering production plans and renegotiating prices.
The European Union proposed 25% counter-tariffs on American goods like soybeans and sausages and signaled willingness for a “zero for zero” deal, though tariffs on autos and metals remain a sticking point.
Stock markets found a firmer footing on Tuesday, but in Asia, Indonesian markets plunged after reopening post-holiday, and its central bank intervened to ease volatility.
Euronext CEO Stephane Boujnah compared the U.S. economy to an emerging market, saying it no longer resembles the stable, dominant force it once was.
Trump defended the tariffs, saying they are vital to rebuild U.S. industry. “No other president would do this,” he claimed.
Meanwhile, Vietnam asked for a delay in tariffs and offered to boost purchases of American goods. Investors and world leaders remain uncertain whether Trump's measures are strategic leverage or long-term policy.
Business leaders, including JPMorgan CEO Jamie Dimon and investor Bill Ackman, warned of severe consequences. Elon Musk has called for zero tariffs and reportedly urged Trump to reconsider, but trade adviser Peter Navarro dismissed Musk as merely a "car assembler."