Trade War Deepens: EU Weighs 25% Tariffs, US Threatens China With 50% Tax

The global trade war is barreling into deeper waters. Just days after President Donald Trump unleashed a sweeping tariff wave, the European Union is moving toward its own broad response—threatening to slap a 25% retaliatory tariff on a long list of U.S. goods. Meanwhile, Trump is now considering a 50% tariff on all Chinese imports, warning Beijing that the pain could still double.

“This is the battle of our generation,” Trump said Monday, vowing to “end the global trade scam once and for all.”

According to Forbes, EU officials are preparing a final list of countermeasures, which could include meat, spirits, consumer goods, and automobiles. The first vote on the package is expected Wednesday, and early signs suggest bloc-wide support despite internal tensions.

Trump’s administration, for its part, is escalating even further. The president is now pushing to raise China’s tariff burden to 50%, up from the 34% announced last week. The current base 10% tariff on 180+ countries—implemented April 3—was only phase one. The White House said “reciprocal rates” are still in development and “the hardest hits are yet to come.”

“China has been bleeding us for decades. This is how we stop the bleeding,” a senior official told Finblog.

Markets Shake, CEOs React

The mounting tariff threats come as markets continue to reel. The S&P 500 lost $5 trillion in value last week alone, marking its worst stretch since March 2020. CEOs across the EU and U.S. are urging caution. Auto manufacturers and luxury goods exporters fear massive fallout if the EU package triggers Trump’s promised counter-retaliation.

According to Forbes, European leaders are still trying to keep diplomatic channels open. But the tone is shifting.

“We want negotiations, but we will not be blackmailed,” said a French official close to the matter.

Germany and Italy, major exporters to the U.S., reportedly want a firmer hand to protect domestic industries. The EU says it’s willing to talk—but only if the White House reverses what it calls an “illegal” tariff regime that breaches WTO rules.

Meanwhile, in Beijing…

As the EU flexes, China is already swinging back. On Friday, Beijing hit back with its own 34% tariff on all U.S. goods and threatened further action on rare earth minerals and tech inputs. State-run media said Trump’s policies are “economically suicidal,” while Chinese officials claim “the market has spoken.”

Trump, however, remains defiant.

“We hold the cards now. The U.S. is the buyer. They need us. We don’t need them,” he said Monday from Trump National Jupiter.

The next round of tariffs—especially on China—could land as early as April 10, with White House insiders saying the 50% rate on Chinese imports could be finalized this week.

Tariffs Will Stay in Place for Weeks, Commerce Secretary Howard Lutnick Says

JPMorgan now sees a US recession this year

EU seeks unity in first strike back at Trump tariffs

US starts collecting Trump’s 10% tariff, smashing global trade norms

Automakers seek ‘opportunity in the chaos’ of Trump’s tariffs

Elon Musk hopes ‘zero tariff situation’, ‘free trade zone ’ for Europe

Trump Announces Tiered Tariffs on China, EU, India, Others — “This Is Just the Start”

‘No Winner In A Trade War’: China, EU And Others React To Trump’s Reciprocal Tariffs

This Is the Largest Tax Shock in Nearly 60 Years

Here’s What Will Cost More After Trump’s Tariffs: Coffee, Cars, More

Trump: ‘Markets Are Going to Boom’

China announces extra 34% tariffs on US goods