Markets Rattle as Trump Threatens 50% Tariff on China Amid Netanyahu's White House Visit

Washington, D.C., April 7, 2025 — Global financial markets plunged Monday as President Donald Trump announced a potential 50% tariff hike on Chinese imports, further intensifying the ongoing trade war. The announcement came as Israeli Prime Minister Benjamin Netanyahu visited the White House, but all attention turned to the President’s unexpected escalation in rhetoric and policy against China.

Trump: Tariffs to Hit Wednesday Unless China Pulls Back

In a strongly worded post on Truth Social, Trump said the new tariffs would go into effect Wednesday, April 9, unless Beijing withdraws its 34% retaliatory tariffs that were announced last week in response to earlier U.S. measures.

“Any country that retaliates against the U.S. by issuing additional tariffs will be immediately met with new and substantially higher tariffs,” Trump warned.

He accused China of:

• Long-term tariff abuse

• Currency manipulation

• Illegal subsidies

• Non-monetary trade barriers

If China fails to meet the Tuesday deadline, Trump vowed to cancel all previously planned meetings and instead shift focus to bilateral trade talks with other nations.

Wall Street & Global Markets React

The Dow Jones Industrial Average tumbled over 800 points following the announcement, while tech-heavy indices and Asian markets also experienced sharp declines. Investors fear a new wave of supply chain disruptions, higher consumer prices, and retaliatory actions that could impact global economic recovery.

Economists warn that a 50% tariff on top of existing duties would be the harshest trade measure yet in the U.S.-China economic standoff, with ripple effects across sectors like technology, automotive, and agriculture.

China’s Response & What’s Next

Beijing has yet to issue an official response to Trump’s latest ultimatum. However, analysts suggest China is unlikely to back down without reciprocal concessions, setting the stage for a further deterioration of trade relations between the world’s two largest economies.

The Chinese yuan dipped against the dollar, and export-driven industries are bracing for a sharp slowdown if the tariffs are enforced.

Political Optics: Netanyahu Overshadowed

Trump’s announcement came just as Israeli PM Netanyahu arrived at the White House, seeking U.S. backing for regional security talks. However, the trade news quickly stole the spotlight, leading to speculation that the administration is using a “maximum pressure” strategy to consolidate foreign and economic policy narratives ahead of the 2026 midterms.