The global trade war, sparked by sweeping tariffs imposed by US President Donald Trump, has escalated. Trump threatened to increase tariffs on China, and the European Union proposed retaliatory tariffs.
Global financial markets recorded losses for a third day in a row, as investors worried that strict trade barriers around the world’s largest consumer market could lead to an economic recession.
Trump said the tariffs would help the United States restore a manufacturing base he says has withered over decades of trade liberalization.
“This is the only opportunity our country has to turn around. Because no other president is willing to do what I am, or even dare to dare,” he told reporters at the White House. “Now, I don’t mind going for it because I see a beautiful picture at the end.”
Trump spoke hours after escalating his confrontation with China, the world’s second-largest economy, saying he would impose an additional 50% tariff on US imports from China on Wednesday if it did not withdraw the 34% tariffs it imposed on US products last week.
The Chinese tariffs were in response to Trump’s 34% “reciprocal” tariffs, and Beijing responded defiantly. Chinese Embassy spokesman Liu Bingyu called Trump’s threat “a typical act of unilateralism, protectionism, and economic bullying.”
He added, “We have repeatedly emphasized that pressuring or threatening China is not the right way to deal with us.” China will firmly protect its legitimate rights and interests.
Meanwhile, the European Commission has proposed retaliatory tariffs of 25% on a range of US goods, including soybeans, nuts, and sausages, while potentially excluding other goods such as bourbon whiskey, according to European press reports.
