While the world markets fall and the prices soar, a financial planner based in Chennai has offered a verification of reality. “As strange as it may seem, the United States needs China more than China needs us,” wrote Muthukrishnan on X. “If China was going to lose an eye, the United States will lose both. The majority of the world would also be partially blind.”
Its warning occurs while the American-Chinese trade war degenerates to an unprecedented summit.
Less than 48 hours after Beijing slapped a 34% reprisal rate on American products, Donald Trump responded with a clearer blow – canceling an additional 50% rate on all Chinese imports. This pushes the total of American prices on Chinese products at an 84% summit, and when combined with the global tariff of 10% of the White House, China now faces a 94% import tax in the United States.
Trump made this announcement at 11:30 a.m. American time (9:00 p.m., via his social platform, Truth Social. Referring to China as a “pricing aggressor”, he said:
“Yesterday, China expressed reprisal prices of 34%, in addition to their already record prices, non-monetary prices, the illegal subsidy of businesses and the massive long-term currency manipulation, despite my warning that any country which retaliates against the United States … will immediately meet new prices considerably.”
He then published a final ultimatum:
“If China does not withdraw its 34% increase above its trade abuses already long-term by tomorrow, on April 8, 2025, the United States will impose additional prices on China by 50%, from April 9.”
The White House has also confirmed that all commercial negotiations with China will be interrupted, while talks with other nations – those who have not retaliated – will become forward.
“In addition, all discussions with China concerning their meetings requested with us will be dismissed! Negotiations with other countries, which have also requested meetings, are starting to take place immediately. ”
The world’s stock markets and oil prices have plunged in the last 72 hours, following Trump’s decision to impose reciprocal rates on all countries taxing US exports. “These are, as their name suggests, just reciprocal-which means that we do them, what they do to us,” he said in a previous briefing.
Before Trump’s last climb, Beijing warned that such measures would trigger a “painful trade war” which “would not benefit anyone”.
