WASHINGTON 鈥 Undeterred by a panicked stock market, President Donald Trump threatened additional tariffs on China on Monday, raising fresh concerns that his drive to rebalance the global economy could intensify a financially destructive trade war.
Trump's threat came after China said it would retaliate against U.S. tariffs he announced last week.
"If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th," Trump wrote on social media. "Additionally, all talks with China concerning their requested meetings with us will be terminated!"
People gather around the Charging Bull statue on Monday in New York.
The U.S. president shows few signs of backing down on tariffs despite the mounting pressure in the financial markets. His commitment to tariffs could have devastating effects for the global economy, even though Trump is banking that it will ultimately pay off with manufacturing jobs.
People are also reading…
Asked Monday if he would consider a pause on his widespread tariffs, Trump said, "We're not looking at that." The U.S. president said he was open to negotiations "if we can make a really fair deal and a good deal for the United States."
Trump said it's possible to have both negotiated settlements with other countries and permanent tariffs.
Even as Israeli Prime Minister Benjamin Netanyahu said his country would take its tariffs against U.S. goods to zero, Trump was noncommittal about removing the new import taxes placed on an ally.
The White House also said Monday that Trump would veto a Senate bill that would mandate congressional approval for new tariffs, a bet that the critical mass of Republican lawmakers will loyally back him despite the economic and political risks.
Containers and ships are seen Monday in The Port of New Orleans.
If Trump implements his new taxes on imports from China, U.S. tariffs on Chinese goods would reach a combined 104%. The new taxes would be on top of the 20% tariffs announced as punishment for fentanyl trafficking and his separate 34% tariffs announced last week. Not only could that increase prices for American consumers, it could also give China an incentive to flood other countries with cheaper goods and seek deeper relationships with other trading partners.
The Chinese Embassy in the U.S. on Monday responded to Trump's latest tariff threat by saying his bluster would not help him resolve any trade disputes.
"We have stressed more than once that pressuring or threatening China is not a right way to engage with us," said Liu Pengyu, the embassy spokesman. "China will firmly safeguard its legitimate rights and interests."
After sell-offs on the prior two days of trading, the Dow Jones Industrial Average on Monday fell 0.9%. The S&P 500 slumped 0.2%, and the Nasdaq composite was up 0.1%.
A screen shows stock prices Monday afternoon at the Nasdaq MarketSite in New York.
Trump frequently bragged about stock market gains during his first term, and the threat of losses on Wall Street was viewed as a potential guardrail on risky economic policies in his second term. But that hasn't been the case, and Trump has described days of financial pain as necessary.
"I don't mind going through it because I see a beautiful picture at the end," he said.
Trump officials frequently appeared on television to make the case for his policies, but none of their explanations calmed the markets.
The Republican president remained defiant despite fears that he could push the U.S. toward a recession, insisting that his tariffs are necessary for rebuilding domestic manufacturing and resetting trade relationships with other countries.
But his aggressive push scrambled U.S. economic policy. Even though inflation remains elevated, Trump called on the Federal Reserve to lower its benchmark interest rates that were increased to constrain price increases.
Federal Reserve Chair Jerome Powell warned Friday that the tariffs could increase inflation, and he said, "There's a lot of waiting and seeing going on, including by us," before any decisions would be made.
The container terminal at the Commercial Sea Port is seen Monday in the Pacific city of Vladivostok, east of Moscow.
European Commission President Ursula von der Leyen said the European Union would focus on trade with other countries besides the United States, saying there are "vast opportunities" elsewhere.
White House trade adviser Peter Navarro suggested countries would need to do much more than simply lower their own tariff rates to reach deals, an indication that talks could be a drawn-out process.
"Let's take Vietnam," he said on CNBC. "When they come to us and say, 'We'll go to zero tariffs,' that means nothing to us because it's the non-tariff cheating that matters."
Billionaire Elon Musk, a top adviser to Trump on overhauling the federal government, expressed skepticism about tariffs over the weekend. Musk has said that tariffs would drive up costs for Tesla, his electric automaker.
"I hope it is agreed that both Europe and the United States should move ideally in my view to a zero tariff situation, effectively creating a free trade zone between Europe and North America," Musk said in a video conference with Italian politicians.
Navarro later told Fox News' "Sunday Morning Futures" that Musk "doesn't understand" the situation.
"He sells cars," Navarro said. "That's what he does." He added, "He's simply protecting his own interests as any businessperson would do."
High tariffs and car repairs cost: The ripple effect
High tariffs and car repairs cost: The ripple effect
High tariffs鈥攖hey affect not only governments and corporations but also consumers right where it hurts鈥攖heir wallets. Because high tariffs raise the cost of motor parts, maintenance, and even insurance claims, the auto industry is particularly affected. High tariffs have the potential to cause everyday spending to soar, regardless of whether you own a car, have insurance, or occasionally rent one.聽
However, what are the precise effects of these increased tariffs? More significantly, how can you protect your money from needless spending? examines how the automotive business is affected by high tariffs in various ways and what you can do to avoid higher costs.聽
Car Repairs: The First to Feel the Heat聽
A car is a necessity rather than a luxury for many individuals. Repair costs, however, start to rise as tariffs raise the price of imported parts.聽
Why Is the Cost of Repairs Increasing?聽
A lot of auto parts are produced abroad.聽
The cost of these components increases when import duties rise. As a result, auto repair firms charge their clients more.聽
- Increased cost of replacement parts: If a fender that used to cost $200 now costs $300 because of tariffs, the additional cost eventually reaches you.聽
- Limited availability: Mechanics may have to find more costly domestic alternatives or wait longer for items to arrive if fewer parts are imported because of financial constraints.聽
- Increased labor costs: Mechanics may bill extra for their time and skills because they now have to deal with more expensive parts and delays.聽
Car owners are instantly affected by the price increase, as a basic bumper replacement that used to cost $800 might now cost up to $1,000.聽
Car Parts: A Supply Chain Nightmare聽
The cost of car components isn't rising鈥攊t's getting volatile. Supply chain breakdowns leave customers with both shortages and higher prices.聽
Which Car Components Are Hit the Worst?聽
Some of the most typically impacted pieces are:聽
- Brake pads and rotors: Most are produced in China, Mexico, and Europe.聽聽
- Engines and transmissions: Big, costly pieces that are much more expensive under high tariffs.聽聽
- Electronic parts: Vehicles depend on imported semiconductors and chips, which are extremely vulnerable to trade barriers.聽
New vs. Used Parts: A Difficult Decision聽
As new car parts become increasingly costly, most car owners opt for used or aftermarket parts. Used parts, however, might not always be accessible, and aftermarket parts might not be of the same quality.聽
Insurance Claims: Higher Payouts, Higher Premiums聽
When repairs become more costly, insurance companies notice. As they pay out higher amounts on claims, they necessarily raise premiums.聽
How insurance companies respond聽
- Increased premiums: To compensate for higher repair costs, insurers increase policy premiums.聽
- Lower payments: Insurers can attempt to save money by making lower payments for claims.聽
- Increased claim processing times: Insurers, as they deal with increased costs, might take longer to approve claims in order to re-evaluate costs.聽
The outcome? Vehicle owners not only pay more for repairs but also for the very insurance policies that are supposed to cover them.聽
Rental Cars: The Hidden Cost Surge聽
Whether you require a rental following an accident or for a weekend escape, you may be surprised by the inflated costs. The effects of exorbitant tariffs trickle down to rental companies, compelling them to revise their pricing structures.聽
Why rental car prices are on the increase聽
- Increased vehicle acquisition cost: Car rental companies buy cars in bulk and mostly rely on imports.聽
- More costly repairs and parts: Costlier repairs and replacement parts make keeping rental fleets more costly.聽
- Disruption of supply chains: With less cars available and delays in production, more demand drives prices even higher.聽
A rental that used to cost $50 a day can now be as much as $75 a day, making short-term rentals costly.聽
Impact on the Average Car Owner聽
All these add up to make the perfect storm for the average drivers. Let us dissect what that means to the average car owner:聽
Brake Pad Replacement聽
- Previous Cost (Estimate): $250聽
- Post-Tariff Cost (Estimate): $350+聽
Insurance Premiums (Annual)
- Previous Cost (Estimate): $1,200聽
- Post-Tariff Cost (Estimate): $1,500+聽
Car Rental (Per Day)聽
- Previous Cost (Estimate): $50聽
- Post-Tariff Cost (Estimate): $75+聽
Bumper Repair
- Previous Cost (Estimate): $800聽
- Post-Tariff Cost (Estimate): $1000+
To the person who gets hit with various car expenses per year, it can equate to another $3,000 or more on top of expenditures every year.聽
How Do You Protect Yourself?聽
Although you cannot control trade agreements or government policies, you can take certain steps to reduce the financial burden.
Compare repair quotes
Various stores might have varied sourcing strategies for automobile parts. Requesting estimates from multiple places can lead to the best bargain.聽
Use alternative parts
Refurbished and aftermarket parts can be an inexpensive substitute for costly original equipment manufacturer, or OEM, parts.
Reconsider your insurance policy
and shopping around for insurance carriers can help you get a reduced premium even as prices increase.
Employ ride-sharing or public transit
When car rental is becoming too expensive, employing public transport or ride-sharing for short-term requirements can prevent you from spending extra money.
Utilize savings apps for transport
One of the best methods to counteract increasing transportation expenses is intelligent financial planning. Certain apps enable users to save money on everything from parking and insurance to gas and maintenance. By streamlining daily expenses, you may save as much as $3,000 annually, making a concrete impact on your budget.聽
Final Thoughts
High tariffs trigger a ripple effect that touches just about everything, from car maintenance to insurance fees and rental expenses. While you may feel their pinch in the form of sticker shock, becoming proactive and identifying intelligent savings methods can keep the costs in line.聽
By becoming proactive鈥攑erhaps by comparing the cost of auto insurance, browsing for substitute automobile parts, or employing money-related tools鈥攜ou are able to shield your finances while keeping your vehicle expenses in line.
was produced by and reviewed and distributed by Stacker.
