Trump Warns China of 104% Tariff Amid Military Spending Concerns
President Donald Trump intensified his trade dispute with China on Monday, threatening to impose additional tariffs that would push the total tariff rate on Chinese goods to 104% if Beijing fails to relent. The White House clarified that the proposed tariffs come in response to China’s alleged misuse of its trade surplus for military expansion.
Trump had previously announced a 34% tariff on Chinese imports during “Liberation Day,” raising the overall tariff rate to 54%. With an additional 50% tariff now under consideration, the cumulative rate would reach 104%.
Also read: China Vows Retaliation as Trump Escalates Tariff Threats
Speaking after his meeting with Israeli Prime Minister Benjamin Netanyahu, Trump criticized China’s economic practices, claiming they funnel surplus funds into bolstering their military capabilities. “China generates a massive surplus, which they use to invest in their military. We don’t want that,” Trump stated. He emphasized that he does not want China spending $500 billion to $600 billion annually on its military and reiterated his stance against backing down on tariffs.
Trump: China is a massive surplus. That they take and they spend on their military we don't want that. I don't want them to take $500 billion, $600 billion a year and spend it on their military. I don't want them spending money on their military. pic.twitter.com/hk66WEmSEt
— Acyn (@Acyn) April 7, 2025
Trump Issues Ultimatum Amid Market Turmoil
As financial markets faced volatility on Monday, Trump urged Americans to remain steadfast while issuing a stern ultimatum to China. In a statement, he accused China of retaliating with a 34% tariff in addition to existing trade barriers, illegal subsidies, and currency manipulation. Trump warned that any further retaliatory measures from Beijing would prompt even higher tariffs from the U.S.
Furthermore, Trump declared that all negotiations with China would cease unless Beijing rescinds its 34% tariff by Tuesday. “All talks with China regarding their requested meetings will be terminated! Negotiations with other countries seeking meetings will commence immediately,” he stated.