Trump Escalates Trade Tensions, Threatens China With New Tariffs
US President Donald Trump has escalated trade tensions, threatening China with additional 50 percent tariffs if it doesn't retreat. This comes after he imposed 20 percent tariffs in January. The EU has proposed a tariff truce, while China and India respond to the US's actions.
Trump has set a deadline of Tuesday noon for China to withdraw its 34 percent counter-tariffs. If not, he threatens to impose another 50 percent, on top of the existing 20 percent. This could significantly impact German exports to the US, potentially decreasing by around 15 percent, according to the ifo Institute.
The EU has offered a solution, proposing to mutually lift all tariffs on industrial goods. However, Trump has rejected a deferral of the planned tariffs, even during a meeting with Israeli Prime Minister Benjamin Netanyahu. Despite this, the EU remains open to negotiations and is preparing countermeasures.
China has vowed to 'defend its interests' if the US persists with its tariff measures. Meanwhile, more than 50 countries, including India, have requested negotiations with the US. India's delegation in Washington is working towards a trade agreement, despite disagreements over US dairy products and agricultural imports.
Trump's tariff threats have sparked global responses. While the EU offers a truce and China vows to defend its interests, India seeks negotiations. The US has until Tuesday to see if China backs down, with potential impacts on German exports and global trade.
