Trump Threatens China With More Tariffs

Trump Doubles Down on trade War, Threatens China with Escalating Tariffs

By Archyde News, April 8, 2025

President Trump’s aggressive trade policies spark global market volatility and raise concerns about a potential recession.

Trump Defends Tariffs amidst Growing Concerns

President Donald Trump on Monday, April 7th, 2025, intensified his trade war rhetoric, threatening to impose even higher tariffs on China. This announcement exacerbated market volatility, marking the third consecutive day of important fluctuations. The President’s stance comes despite mounting pressure from economists,investors,and even members of his own party,who fear the strategy could trigger a global recession.

During a meeting with Israeli Prime Minister Benjamin Netanyahu in the Oval Office, Trump addressed reporters, stating, “We’ve been ripped off and taken advantage of by many countries over the years, and can’t do it anymore. We have many, many countries that are coming to negotiate deals with us, and they’re going to be fair deals.”

These remarks highlight Trump’s unwavering conviction that tariffs are a necessary tool to rectify what he perceives as unfair trade practices. Though, critics argue that these policies disproportionately harm American consumers and businesses.

Economic Experts Sound the Alarm

The potential economic fallout from the escalating trade war is a growing concern. Last week, the Trump administration imposed a 10% across-the-board tariff on imports, along with additional tariffs on approximately 90 countries.

This move prompted Goldman Sachs to revise its recession probability forecast. The financial firm stated on Sunday, April 6th, “probability of a recession in the next 12 months had jumped to 45%.” This stark assessment underscores the significant risks associated with the current trade policies.

The core issue, as the President sees it, ties to the national debt. “We have $36 trillion in debt. I want to get rid of it, and we can do it quickly with proper deals,” trump said. He also added, “Countries don’t allow us to sell our product, but we allow them to sell their product…They charge us massive amounts of money for the privilege of going into their country. Those days are over.” This perspective frames the trade war as a necessary step to address the national debt and create a more level playing field for American businesses.

Though, critics argue that tariffs are a blunt instrument that ultimately increases costs for American consumers and businesses, potentially leading to job losses and economic stagnation.

International Reactions and Retaliatory Measures

the President’s approach is not without outcome. While some countries have expressed a willingness to negotiate, others have responded with retaliatory measures.

During the meeting with prime Minister Netanyahu, Netanyahu pledged to work towards eliminating the trade deficit with the U.S. However, Trump did not commit to reducing the 17% tariff imposed on Israel, reminding Netanyahu, “don’t forget, we help Israel a lot.” This statement highlights the complex relationship between trade and foreign aid.

China, however, has taken a more assertive stance. The country retaliated with a 34% tariff on American imports, prompting a strong reaction from President Trump. On Monday morning, he threatened via Truth Social: “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.”

This escalation raises the stakes significantly and increases the likelihood of a prolonged trade conflict with far-reaching consequences for the global economy.

The following table illustrates the potential impacts of the escalating tariffs:

Impact Area	Potential Consequence	U.S. Example
consumer Prices	Increased cost of goods	Higher prices for imported electronics and clothing at Walmart.
Business Investment	Reduced investment due to uncertainty	Ford delaying factory expansion due to increased material costs.
Economic Growth	Slower economic growth or recession	Decline in GDP growth due to reduced exports and consumer spending.
International relations	Strained relationships with trading partners	increased diplomatic tensions with China and the EU.

Business Leaders Urge Caution

The business community is increasingly concerned about the potential impact of the trade war. Several business leaders have publicly called on President Trump to reconsider his approach and adopt a more predictable strategy.

Bill Ackman,a hedge fund manager and past supporter of trump,warned of a “self-induced,economic nuclear winter” if the President doesn’t change course. On Sunday, April 6th, Ackman wrote on X, “By placing massive and disproportionate tariffs on our friends and our enemies alike and thereby launching a global economic war against the whole world at once, we are in the process of destroying confidence in our country as a trading partner, as a place to do business, and as a market to invest capital.”

Despite these warnings,Trump remains confident in his strategy,claiming that he isn’t concerned about driving trading partners to China and that many countries have approached him about negotiations.

The Long-Term Vision: Domestic Manufacturing

President Trump has repeatedly emphasized the importance of bringing manufacturing back to the United States. he acknowledges that this is a long-term process that requires significant investment and infrastructure development.

“You got to build a thing called the factory. You have to build your energy. You have to do a lot of things,” he said. “I’m giving them energy. You know, we’re going to let them build their own power plants. They’ll be their own … We need massive amounts of electricity. we’re going to compete with china and others.” This vision highlights the administration’s focus on energy independence and creating a favorable environment for domestic manufacturers.

Addressing the Counterarguments

While the administration argues that tariffs are essential to protecting American jobs and industries, critics raise several key counterarguments:

• Increased Costs for Consumers: Tariffs ultimately translate to higher prices for consumers, reducing their purchasing power and potentially leading to decreased demand.
• Damage to American Businesses: Many American businesses rely on imported goods and materials. Tariffs increase their costs, making them less competitive in the global market.
• Retaliation from Trading Partners: As seen with China’s response, tariffs often trigger retaliatory measures from other countries, harming American exports and further disrupting global trade.
• Distortion of Markets: Tariffs distort market signals and create artificial advantages for some industries while disadvantaging others, leading to inefficient resource allocation.

These counterarguments suggest that the potential costs of the trade war may outweigh the benefits, especially in the long term.

this is an ongoing story. Archyde News will continue to provide updates as the situation develops.

Given Dr. Vance’s comments about the risks of recession, Goldman Sachs’ estimate, and potential consequences for American businesses, what specific steps can policymakers take to mitigate these risks?

Interview: Navigating the Trade War with Dr. Eleanor Vance

Archyde News: Welcome, Dr. Vance. Thank you for joining us. We’re here today to discuss the escalating trade war and its impact on the global economy.

Dr. Vance: My pleasure. Glad to be here.

The Current State of the Trade War

Archyde News: President Trump’s recent threats of increased tariffs on China have heightened concerns.From your viewpoint as a leading economist, what are the most immediate risks?

Dr. Vance: The immediate risks are several. First, we’re seeing increased market volatility. Second, these tariffs will undoubtedly lead to higher prices for American consumers and businesses. Third,and perhaps most worryingly,there’s a growing risk of recession given Goldman Sachs has estimated a 45% probability of recession.

Archyde News: The White House argues these tariffs are a necessary tool to rectify unfair trade practices and tackle the national debt. What are your thoughts on this justification?

Dr. Vance: While addressing unfair trade practices is important,tariffs are a blunt instrument. They often hurt the very businesses and consumers they are intended to protect.Also, the link to the national debt is tenuous. Tariffs might generate some revenue, but the economic damage they inflict can far outweigh any gains.

Impact on Businesses and Consumers

Archyde News: We’ve seen China respond with retaliatory measures. What are the expected consequences of this tit-for-tat approach on American businesses?

Dr. Vance: American businesses that rely on exports will suffer. Their products become more expensive in China, reducing sales. Furthermore, businesses that import raw materials or components will face higher costs, making them less competitive globally. This can lead to job losses and reduced investment, as highlighted in the article with Ford potentially delaying factory expansion.

Archyde News: The article mentions potential price increases for consumers. Can you elaborate on how tariffs translate into higher costs at the consumer level?

Dr. Vance: Simply put, tariffs are a tax on imported goods. This increased cost gets passed on to consumers in the form of higher prices for everything from electronics to clothing. Additionally, reduction in demand is likely.

Looking Ahead

Archyde News: There is much concern from Business Leaders like Bill Ackman. If that concern plays out, will the trade war be a lasting phenomenon?

dr. Vance: The article’s counterarguments are spot on.We’re already seeing counteractions. I expect a prolonged trade conflict, with far-reaching consequences for the global economy. It also will affect international relations.

Archyde News: The administration is also focused on revitalizing domestic manufacturing, and as emphasized by the President- what do you think?

Dr. Vance: Revitalizing domestic manufacturing is a laudable goal. However, it is important to be realistic about how long such efforts will take.The article also mentioned the need for greater electrical facilities to boost manufacturing. it can all take a long time and considerable resources.

Archyde News: What are your thoughts?

Dr. Vance: Absolutely, the administration’s focus on domestic manufacturing is critically important, but they face manny difficulties. Whether they prevail is a major question.

Archyde News: Thank you, Dr. Vance, for sharing your insights. It has been very insightful.

Dr. Vance: My pleasure.