In Video: Trump says he will impose a 100% tariff on China

Global Markets Plummet as Trump Threatens Stiff New Tariffs on China

The threat from President Trump to impose stiff new tariffs on imports from China is sending shockwaves through the global economy, with the Dow, NASDAQ, and S&P 500 indices all closing down sharply on Friday. The S&P 500 index experienced its biggest drop since global tariffs were announced in April, with investors fearing the potential impact of the new tariffs on already fragile global trade relations.

A 100% Tariff Rate on Chinese Imports

The proposed new tariffs would see a 100% rate imposed on certain Chinese imports, including goods such as toys, furniture, and electronics. This is on top of existing taxes on steel and aluminum, which are currently at 50%. The drastic increase in tariff rates is a response to China’s “extraordinarily aggressive” position on trade, according to Trump.

China’s Rare Earth Mineral Restrictions

China’s recent announcement restricting the export of rare earth minerals, which account for 90% of global supplies, is seen as a major provocation by the Trump administration. The move is believed to be a retaliatory measure in response to Trump’s previous tariffs on Chinese goods.

Escalating Tensions Between Trump and Xi

The budding trade war between Trump and Chinese President Xi Jinping has been escalating for months. The two leaders are set to meet in person at the G20 summit in South Korea in two weeks, but Trump has left the door open to cancelling the meeting if China fails to address US concerns.

Impact on Consumers

The proposed tariffs will likely have a significant impact on consumers, particularly those who rely on affordable imports from China. With prices set to rise, household budgets may feel the pinch as prices for everyday items such as toys, furniture, and electronics increase.

Markets in Free Fall

The sharp drop in global markets is a clear indication of the new tariffs’ immediate impact. Investors are fearing the potential consequences of a full-scale trade war between the world’s two largest economies.

As the trade war between the US and China continues to escalate, the outcome remains uncertain. One thing is clear, however – the impact on global markets and consumer wallets is already being felt.