What’s next for TikTok after deal was delayed due to Trump tariffs?
President Donald Trump said he would be open to negotiating on Chinese tariffs if they agree to the TikTok deal.
China faced a deadline Tuesday to roll back the reciprocal tariff it imposed on the U.S. or face an additional 50% levy on all goods the trading giant ships to the United States as the global tariff war fueled by President Donald Trump heats up.
Trump announced a 10% tariff on almost all countries and larger tariffs on China and dozens more last week. China was hit with a 34% levy imposed on top of an existing 20% tariff on Chinese goods. China announced a reciprocal 34% tariff on U.S. products, drawing a sharp rebuke from Trump.
“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 Truth Social.
On Tuesday, the country’s commerce ministry said Trump’s threat to escalate tariffs on China “is a mistake on top of a mistake” and vowed to “fight to the end.”
The tariffs have pounded global stocks − and U.S. stock indexes are among the hardest hit. The blue-chip Dow, the broad S&P 500 and the tech-heavy Nasdaq have dropped by double-digit percentages in recent weeks.
On Tuesday, world shares saw a modest rebound after three days of heavy selling. U.S. futures pointed to a positive open on Wall Street after a particularly volatile Monday that saw stocks fall to their lowest point in a year before rebounding, falling again and steadying.
The U.S. stock market endured a turbulent day Monday as Trump stood firm on his sweeping tariff plan.
Stocks opened sharply lower only to pop up briefly into positive ground on a false report that the president would delay tariffs for 90 days. The White House denied the report and stocks swung lower again.
Stocks fell further after Trump threatened on Monday to impose an additional 50% tariff on China if the Asian nation doesn’t withdraw its retaliatory tariff set to go into effect on Wednesday.
The blue-chip Dow closed down 0.96%, or 366.54 points, to 37,948.32; the broad S&P 500 fell 0.23%, or 11.90 points, to 5,062.18. But the tech-heavy Nasdaq edged up 0.1%, or15.48 points, to 15,603.26. The benchmark 10-year yield rose to 4.22%, and gold slipped but held near its record high.
All three major stock indexes are more than 15% below their peaks. The Nasdaq is in a bear market, or more than 20% below its record high, and the S&P 500 dipped its toes into one during Monday’s session.
Trump defended his massive tariffs as the stock market nosedived further, saying the U.S. has an “opportunity to reset the table on trade.”
“Nobody but me would do this,” Trump said. “You know, it’s nice to serve a nice easy term, but we have an opportunity to change the fabric of our country.”
Trump also said his tariffs can remain permanent even though he’s engaging with Japan and other nations on negotiations.
“They can both be true,” Trump said. “There can be permanent tariffs and there can also be negotiations because there’s things we need beyond tariffs.”
A recession is informally considered at least two straight quarters of declining economic output. But the technical definition is “a significant decline in economic activity that is spread across the economy and lasts more than a few months,” according to the nonprofit National Bureau of Economic Research.
The measure is based on employment, income, consumer spending and industrial production, among other criteria. An economic tailspin is typically accompanied by hundreds of thousands or millions of net job losses.
Correction territory is generally understood to mean a stock market indicator has dropped at least 10% from its recent market high. This is different from bear market territory, which refers to a stock market drop of 20% or more from a recent peak, or a closing high.
Every investment is susceptible to corrections. They can apply to individual stocks, bonds, or stock indexes such as the Dow, S&P 500, and Nasdaq.
Several things can prompt a correction including a change in economic policy, newly released jobs or inflation data and company earnings reports.
−Rachel Barber