A global trade war touched by US President Donald Trump’s sweeping tariffs escalated further on Monday as Trump threatened to increase duties on China and the European Union proposed counter-tariffs of its own.
US President Donald Trump said on Tuesday he was not considering a pause on tariffs to allow for negotiations with trading partners, but said he would talk to China, Japan and other countries about the duties.
Asked during a White House press availability with Israeli Prime Minister Benjamin Netanyahu if he was open to pausing tariffs, Trump said: “Well, we’re not looking at that. We have many, many countries that are coming to negotiate deals with us and they’re going to be fair deals. And in certain cases they’re going to be paying substantial tariffs. There’ll be fair deals.”
China’s retaliation
Trump said he would impose an additional 50 per cent duty on US imports from China on Wednesday if it did not withdraw the 34 per cent tariffs it had imposed on US products last week.
Those Chinese tariffs had come in response to 34 per cent “reciprocal” duties announced by Trump.
“All talks with China concerning their requested meetings with us will be terminated!” he wrote on social media.
How has Europe responded?
The European Commission, meanwhile, proposed counter-tariffs of 25 per cent on a range of US goods, including soybeans, nuts and sausages, though other potential items like bourbon whiskey were left off the list, according to a document seen by Reuters.
Officials said they stood ready to negotiate a “zero for zero” deal with Trump’s administration.
“Sooner or later, we will sit at the negotiation table with the US and find a mutually acceptable compromise,” EU Trade Commissioner Maros Sefcovic said at a news conference.
Recession fears
Financial markets across the globe posted a third day of losses as investors worried that steep trade barriers around the world’s largest consumer market could lead to a recession.
Asian and European shares also plunged as investors feared the duties Trump has likened to “medicine” could lead to higher prices, weaker demand and potentially a global recession.
Goldman Sachs raised the odds of a US recession to 45 per cent.
