US president Donald Trump threatened further escalation of tariffs on Monday as global markets again plunged, wiping billions of dollars and euros of the values of companies, savings and pension funds.
Mr Trump said he would impose a further 50 per cent tariff if China did not withdraw its retaliation to earlier US tariffs – a move which would mean tariffs on Chinese imports to the US would be 104 per cent, White House officials confirmed.
Global markets saw another day of steep falls, after warnings by Wall Street leaders, including Jamie Dimon of JP Morgan Chase and BlackRock’s Larry Fink, who told an event that most chief executives think the United States was “probably in a recession right now”.
Markets surged momentarily after reports that Mr Trump would pause his tariffs for 90 days. But the White House immediately denied the report as “fake news”, leading to further declines in share prices.
Doctors initiate legal action over State’s transgender policy
How U2 drummer Larry Mullen jnr avoids conflict with neighbours: buy up all surrounding houses
‘I caught my husband masturbating with a male friend but he says it’s nothing’
Rory McIlroy’s spine-tingling third round puts him in control of his Masters destiny
Last night, in an Oval Office press conference with Israeli prime minister Binyamin Netanyahu, Mr Trump insisted that his tariffs would stay, though he did signal room for negotiation
Meanwhile, European Union trade ministers met in Luxembourg where Minister for Trade Simon Harris said it would be an “extraordinary escalation” if the EU were to use special powers to target US tech and internet companies, reflecting Dublin’s cautious approach to the question of the bloc’s response.
Mr Harris also suggested he was more open to support for firms hit by US tariffs than the Government has recently indicated. “If there’s a need to support individual sectors as we go through this global financial challenge ... Ireland certainly will always keep that under review.”
Mr Harris will brief the Cabinet this morning on the EU discussions, before travelling to Washington later on Tuesday where he will meet senior officials, including commerce secretary Howard Lutnick.
European Commission president Ursula von der Leyen and trade commissioner Maroš Šefčovič said they wanted to see urgent negotiations with the United States and said they had offered the US a “zero-for-zero” tariff scheme on industrial goods.
Government grapples with tariff fallout
“We have offered zero-for-zero tariffs for industrial,” said Dr von der Leyen. “Because Europe is always ready for a good deal. So we keep it on the table.”
However, the EU is continuing to prepare its retaliation to the tariffs, with member states considering a list of US products to be hit with reciprocal action, likely to be finalised in the coming days.
Minister for Agriculture Martin Hayden is also in Washington where he is due to meet US agriculture secretary Brooke Rollins and congressional leaders.
Speaking to The Irish Times before leaving, Mr Hayden reiterated that the EU “stands ready to negotiate” but declined to be drawn on whether the bloc could ease non-tariff barriers – such as food standards – to allow more US imports to the European Union.
