Donald Trump's new 50% tariff threat on China

India Today

Donald Trump has threatened a new 50% tariff on Chinese goods, escalating the ongoing trade war. This is in addition to existing tariffs, potentially pushing the total rate beyond 100% for certain goods.

Transcript

00:00What is this Trump tariff and why is it on war with China?

00:03Here's the detail that I want to bring to you.

00:06This is a new tariff that Donald Trump has threatened.

00:09It's a higher 50% tariff.

00:11This is apart from the reciprocal tariff of 34%

00:14when he was announcing for all countries, 34% for China.

00:17This is apart from the 20% tax that has come in

00:22to curb fentanyl flow from China

00:24into the United States of America.

00:25So this clearly raises the bar when it comes to Chinese goods

00:29and the tariffs against them.

00:30Remember, usually the baseline tariff has been 10%

00:34and he's given it to many countries, including New Zealand.

00:36However, when it comes to 34, then a 50%,

00:40just imagine the kind of the additions that are coming in

00:43with regard to tariff against China.

00:45Therefore, perhaps the highest in many ways.

00:48Total tariff rate, therefore, goes beyond 100% as well

00:52in certain cases.

00:54So pre-existing tariff from first term was between 7.5 to 25%

00:59and it could go beyond 80% as well

01:01when it comes to China on certain goods.

01:03So that is why one of the reasons that China is threatening

01:07in turn saying this is economic blackmail,

01:08we'll do it for that.

01:10And Donald Trump says, I'll impose a higher tariff.

01:13But it's not just about China.

01:15For example, Germany has also said,

01:16this is a nonsense tariff

01:18against the United States of America.

01:20Europe, remember, could be very important

01:22because that is where European Union

01:24could be facing a massive impact,

01:26a higher tariff by Trump administration.

01:28More in this report.

01:29I don't want anything to go down,

01:32but sometimes you have to take medicine to fix something.

01:36The world is getting a taste of Trump's bitter medicine

01:40and he's showing no signs of reversing course.

01:44But there is some pushback.

01:46After striking back with a slew of countermeasures,

01:49including extra levies of 34% on all US goods,

01:53China is calling Trump's tariffs protectionist bullying.

01:59The Chinese government has made its solemn position clear

02:02regarding the US abuse of tariffs.

02:04The United States, under various pretexts,

02:07has imposed tariffs on all its trading partners,

02:09including China,

02:11which severely infringes upon legitimate rights

02:13and interests of other countries,

02:15seriously violates the rules of the World Trade Organization,

02:19gravely undermines the rule-based multilateral trading system

02:23and disrupts global economic order and stability.

02:27The Chinese government strongly condemns

02:29and firmly opposes such actions.

02:31The US approach is a typical act of unilateralism,

02:34protectionism and economic bullying,

02:36which causes harm to others while backfiring on itself.

02:41Europe has reacted with a mix of criticism,

02:44economic concern and calls for unity within the European Union.

02:53Of course, we did not agree with the choice of the United States,

02:57but we are ready to deploy all the instruments,

02:59negotiations and economics needed to support our businesses

03:03and the sectors that will be penalized.

03:07Germany's economy minister was among the first European officials

03:11to voice strong criticism,

03:13labeling the US move as dangerous and counterproductive.

03:21The argument that Trump uses as the basis for his decision

03:25simply does not apply.

03:27So we shouldn't get involved in this argument at all.

03:29And this is linked to the fact that talk of reciprocal tariffs,

03:33that is such countermeasures against advantages

03:36that Europe or the world has over the USA,

03:38is simply wrong.

03:40They are preventive measures.

03:41They are isolationist measures

03:43that he has taken with serious damage to the global economy.

03:46The stock markets are already collapsing

03:49and the damage could become even greater.

03:52The US decision to raise tariffs against Europe

03:55and the rest of the world is extremely unfortunate,

03:59but the EU stands united right now.

04:02We're in favor of a negotiated solution,

04:05but of course stands ready for countermeasures

04:07that are well targeted.

04:10Voices of discontent are also growing louder

04:13within the United States.

04:16Billionaire fund manager Bill Ackman,

04:18who endorsed Donald Trump's run for president,

04:21said the US leader was losing the confidence of business leaders

04:25and should pause his trade war.

04:29Elon Musk himself is pushing for zero tariff zone

04:33between US and EU.

04:35I hope that the United States and Europe

04:39can establish a very close partnership.

04:43We obviously are, there's an alliance already,

04:46but I'm hopeful that there can be a very close relationship

04:49with America and Europe.

04:52Goldman Sachs has raised the odds

04:54of a US recession to 45% from 35%.

04:58The second time it has increased its forecast in a week.

05:01Amid a growing chorus of such predictions

05:04by investment banks due to an escalating trade war.

05:08At least seven top investment banks

05:10have raised their recession risk forecasts.

05:13With JP Morgan putting the odds

05:15of a US and global recession at 60%.

05:19On fears that the tariffs will not only ignite US inflation,

05:23but also spark retaliatory measures from other countries.

05:28Bureau report,

05:29Bureau report, India Today.

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