This morning, President Trump issued a new ultimatum to China. He promised to impose an additional 50 percent fee on all imports of Chinese goods — bringing them to a total of 104 percent — unless Beijing agreed to rescind its retaliatory tariffs. He said the U.S. would not negotiate until China backed down.
The move seemed designed to send a message that the president remained committed to his trade war, even if it meant higher prices for Americans. Asked this afternoon about a potential pause on tariffs, Trump said, “We’re not looking at that.”
U.S. stock markets swung wildly. At one point, the S&P 500 fell as much as 4.7 percent; then, it briefly rallied to a 3.4 percent gain after a false report about a tariff reprieve. The index ended the day down 0.2 percent, 17.6 percent below its February peak.
One of Wall Street’s most influential leaders, Jamie Dimon, the head of JPMorgan Chase, warned that stock prices might still be too high. In a letter to shareholders, he said that Trump’s tariffs were likely to increase inflation and slow the American economy, echoing the growing anxiety on Wall Street.