Trump's Tariff Threat Sparks Global Market Turmoil

President Donald Trump is escalating the trade conflict with China, threatening to impose additional 50% tariffs if Beijing does not remove its current retaliatory tariffs on U.S. goods by tomorrow. The White House has dismissed any rumors suggesting Trump might implement a 90-day tariff pause as “fake news.” As a result of the escalating tensions, U.S. markets fell significantly on Monday for the third consecutive session, as the impasse in trade barriers severely impacts global commerce and investments.

Asian markets faced a downturn overnight, with major stock indices in Singapore, Australia, Japan, South Korea, and India experiencing notable declines. European Union President Ursula von der Leyen has indicated that while the EU is open to negotiating with the U.S. regarding the tariffs, they are also preparing to take retaliatory steps if required. Meanwhile, prominent Trump supporter and billionaire investor Bill Ackman cautioned that the U.S. is teetering on the verge of an “economic nuclear winter” as a result of the tariff wars.

In a Truth Social update, Trump issued an ultimatum to China, setting a deadline of Tuesday for the removal of the 34% tariffs Beijing enacted in response to the new U.S. tariffs. The countdown to this deadline continues to rattle global financial markets, fueling uncertainty and tensions between the world’s two largest economies.