Trump promises new tariffs if China doesn’t withdraw its retaliatory tariffs

This won’t be good for sentiment.

From Trump on Truth Social:

Yesterday, China issued Retaliatory Tariffs of 34%, on top of their
already record setting Tariffs, Non-Monetary Tariffs, Illegal
Subsidization of companies, and massive long term Currency Manipulation,
despite my warning that any country that Retaliates against the U.S. by
issuing additional Tariffs, above and beyond their already existing
long term Tariff abuse of our Nation, will be immediately met with new
and substantially higher Tariffs, over and above those initially set.
Therefore, 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. Additionally, all talks with China concerning their requested
meetings with us will be terminated! Negotiations with other countries,
which have also requested meetings, will begin taking place
immediately. Thank you for your attention to this matter!

April 9 is Wednesday.

This led to some immediate selling in the S&P 500. Is it possible that we get Trump delaying tariffs on everyone else and leaving them on China? That would be the best outcome of this because I can’t see China backing down, that would lose face.

Right now China’s tariff rate is at 54% so this would take it to 104%.

The stakes for Wednesday just got higher.

There are also reports there where US buyers are asking China sellers to eat the tariffs. That obviously just got much harder.

I guess the other thing you could hope for here is that Trump already thinks he has some kind of off-ramp with China.

This article was written by Adam Button at www.forexlive.com.