The warning follows China’s announcement of a 34% levy on American goods, a response to Trump’s earlier imposition of similar duties under his “Liberation Day” policy, which introduced a global 10% minimum tariff and a specific 34% charge on Chinese imports.

Posting on his social media platform Truth Social, Trump gave Beijing a tight deadline to reverse its decision or face what would be one of the most aggressive tariff increases in recent trade history.

“Any country that retaliates with further tariffs will be met with significantly higher tariffs from the U.S.,” he declared, singling out China for what he called “decades of abusive trading practices.”

Should the threat materialise, combined U.S. duties on Chinese goods would soar to a staggering 104%, accounting for previous rounds of tariffs including a 20% charge implemented in March and the recent 34% increase.

The Chinese embassy in Washington fired back, labelling the move as "economic intimidation" and a "textbook example of protectionism."

Spokesperson Liu Pengyu said Beijing would not bow to pressure and vowed to defend its economic interests through "firm countermeasures."

Trump’s stance has rattled global financial markets, which have been jittery since the introduction of sweeping tariffs earlier this month.

Stock indices across Asia and Europe recorded sharp losses on Monday, with Hong Kong’s Hang Seng experiencing its worst single-day drop since the late 1990s. U.S. markets also opened in the red, continuing a week-long slide driven by fears of a deepening trade standoff.

Despite growing anxiety among investors and trade experts, Trump doubled down, suggesting that negotiations with countries seeking exemptions or revisions to tariffs would proceed—but on U.S. terms.

“We’re not backing down,” he told reporters outside the White House, adding that other nations must come forward with “fair and balanced proposals.”

He also revealed that trade discussions had begun with both Japan and Israel, while accusing the European Union of building barriers intended to disadvantage the U.S.

“They were set up to hurt American trade,” Trump claimed, dismissing recent EU offers to negotiate reciprocal tariff cuts.

Critics argue that the administration’s tariff campaign is likely to drive up consumer prices. According to an analysis from the Yale Budget Lab, American households may already face an additional $3,800 in annual costs due to rising import duties—excluding the potential 50% tariff hike.

Still, Trump maintains that tougher trade policies are necessary to level the playing field. “It’s not just about tariffs—it’s about fairness,” he said. “America has been taken advantage of for too long.”

Currently, China’s top exports to the U.S.—which include electronics, computers, and consumer goods—stand to be most affected by the proposed hike. Meanwhile, American products hit by Chinese tariffs include key exports like grains, aircraft, and pharmaceuticals.

The warning follows China's announcement of a 34% levy on American goods, a response to Trump’s earlier imposition of similar duties under his “Liberation Day” policy, which introduced a global 10% minimum tariff and a specific 34% charge on Chinese imports.