Trump threatens additional 50% tariff on China

President Donald Trump warned China to remove its matching 34% tariff on the United States by Tuesday or incur an additional 50% trade tax, according to a Monday morning statement. The White House will not hold negotiation meetings with China until the tariff is removed, Trump added. China planned to issue a 34% tariff to match the president’s new trade tax rate for China under the reciprocal tariff policy enacted last week. The Dow Jones Industrial Average dropped well over 1,000 points when markets opened the morning after Trump unveiled the policy. As of Monday afternoon, the market still had not recovered from those losses. Trump added that the United States will begin trade negotiations with other countries.

Stock markets outside the United States also saw serious shifts after Trump’s tariffs. Monday brought Hong Kong’s Hang Seng Index down by about 13% and the Hang Seng TECH index down about 17%. Stoxx Europe 600, which included economic data from 17 countries across the continent, also dropped by about 4.5%, continuing its steady decline over the last week.

What countries are warned to negotiate? Over 50 countries have contacted the White House to negotiate tariffs, National Economic Council Director Kevin Hassett said during a Monday interview.

• Israeli Prime Minister Benjamin Netanyahu arrived in Washington, D.C., Sunday night to discuss the tariffs and other issues with Trump. Netanyahu met with Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer Sunday night, and was scheduled to meet with Trump Monday at around 2 p.m.

• Taiwan offered to drop all tariffs on the United States and negotiate new rates from scratch with the White House, Taiwanese President Lai Ching-te wrote early Monday morning. Taiwan had no plans to impose a retaliatory tariff on the United States and agreed to increase U.S. imports and adopt other measures to keep competition fair, he added.

• The European Union also planned to drop all tariffs on industrial goods and negotiate new trade rates with the United States, European Commission President Ursula von der Leyen said Monday. Europe is always ready for a good deal, but negotiators are ready with countermeasures, she added.

• Japan also planned to negotiate tariffs to benefit both countries, Prime Minister Shigeru Ishiba said Monday. He recounted a phone conversation with Trump where Ishiba emphasized the strong trade partnership the countries have had and aimed to continue constructive discussions around the trade tax. Trump confirmed Monday morning that the Japanese negotiators were heading to Washington D.C.

Dig deeper: Read my report from last week for more about the tariff hike.