China Vows to 'Fight' as Trump Tariffs Shake Markets...

China Vows to 'Fight' as Trump Tariffs Shake Markets: Live Updates
By Amanda Castro
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Tensions between the world's two largest economies are climbing again as President Trump threatens to slap an additional 50% tariff on Chinese goods. In response, Chinese President Xi Jinping has taken a hardline stance, with Beijing accusing Washington of "blackmail" and pledging to "fight to the end." The high-stakes standoff is fueling fears of a prolonged trade war that could rattle markets and impact global supply chains.

What to Know:

Trump threatened new tariffs unless China reverses its retaliatory levies.
Beijing responded by vowing to escalate if the U.S. follows through.
Chinese officials called the U.S. move "blackmail."
Analysts say Xi can't afford to look weak amid rising nationalism.
China's state-run media and markets have rallied in support of Xi's stance.
A meeting between Trump and Xi appears increasingly unlikely.
Stay with Newsweek for the latest updates.

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09:14 AM EDT
Trump's trade representative to defend tariffs in Senate hearing
Jamieson Greer
Jamieson Greer, President Donald Trump's nominee to be the U.S. Trade Representative, testifies during his Senate Finance Committee confirmation hearing at the Dirksen Senate Office on February 06, 2025 in Washington, DC. Kayla Bartkowski/Getty Images
U.S. Trade Representative Jamieson Greer is scheduled to testify before the Senate Finance Committee today, where he will defend the Trump administration's tariff policies.

In his prepared remarks, Greer is expected to explain that the tariffs were a response to the growing trade deficit, which he attributes to unbalanced trade practices by foreign countries, per CNN. He will highlight that President Trump declared a national emergency to address these economic imbalances.

Greer is also set to emphasize the positive outcomes of the tariff strategy, noting that nearly 50 countries have shown interest in discussing the new policies and seeking reciprocal trade agreements.

The hearing will begin at 10 a.m. ET.

08:58 AM EDT
The Smoot-Hawley Tariff Act and its lasting impact on U.S. trade policy
In the early 1930s, with the Great Depression in full swing, Republicans Rep. Willis Hawley and Sen. Reed Smoot pushed for the Smoot-Hawley Tariff Act, aiming to protect American farmers and manufacturers from foreign competition. Signed into law by President Herbert Hoover in 1930, the act raised tariffs on thousands of imported goods. While it was intended to shield U.S. industries, it instead triggered retaliatory tariffs from other countries, worsening the economic crisis.

Historically, Smoot-Hawley is seen as a major misstep, amplifying the financial difficulties of the Depression. Hoover, who entered the presidency with a background in business, hoped the tariffs would stimulate growth, but the results were disastrous. U.S. trade partners retaliated, and the economy continued its downward spiral. This failure has long been viewed as one of the key miscalculations that delayed the country's recovery, which only began with World War II's industrial demands.

Though President Donald Trump has revived the tariff debate, invoking the protectionist policies of the past, his approach differs from Hoover's. Trump has argued that high tariffs are essential for protecting U.S. manufacturing, even as critics warn of similar global repercussions. The history of tariffs in the U.S. stretches back to the nation's founding, with various acts aimed at protecting domestic industry, but the results have often been mixed, with both benefits and harm to consumers and manufacturers alike.

The Smoot-Hawley Tariff Act, a product of its time, remains a cautionary tale about the unintended consequences of protectionist policies. As President Trump pursues his own tariff agenda, the echoes of past mistakes resonate, raising questions about the balance between safeguarding national industries and fostering global economic cooperation.

08:45 AM EDT
Health Secretary Robert F. Kennedy Jr. plans to review fluoride recommendations
U.S. Health Secretary Robert F. Kennedy Jr. announced Monday that he intends to instruct the Centers for Disease Control and Prevention (CDC) to stop recommending fluoride in community drinking water. Kennedy revealed he is forming a task force of health experts to evaluate the issue and propose new guidelines.

Additionally, the U.S. Environmental Protection Agency (EPA) said it is reviewing new scientific data regarding the potential health risks of fluoride in drinking water. The EPA is responsible for setting the maximum fluoride levels allowed in public water systems.

While Kennedy cannot directly mandate that communities stop fluoridating water, he can direct the CDC to cease its recommendations and collaborate with the EPA to adjust the permissible fluoride levels.

Utah recently became the first state to ban fluoride in public drinking water, despite opposition from dental professionals and national health organizations who argue the decision could harm low-income residents who may not have access to regular dental care.

08:30 AM EDT
Iran, U.S. to hold indirect talks on nuclear issue in Oman
Iran's Foreign Minister Abbas Araghchi will begin indirect discussions with U.S. Middle East envoy Steve Witkoff in Oman on Saturday, as reported by Iran's semi-official Tasnim News. The talks, mediated by Oman, will focus on Iranian denuclearization, although President Donald Trump had previously claimed that direct U.S.-Iran talks had already started.

Araghchi confirmed the indirect nature of the talks, telling Tasnim that Oman would facilitate the discussions. The U.S. has not engaged in direct negotiations with Iran since the 2015 nuclear deal, which saw Iran scale back its nuclear activities in exchange for sanctions relief. However, after Trump withdrew from the agreement in 2018, Tehran resumed its nuclear program.

"It is as much an opportunity as it is a test. The ball is in America's court," Araghchi stated on social media.

08:19 AM EDT
Trump initiates national security review of Nippon Steel's bid for U.S. Steel
U.S. Steel shares saw an uptick ahead of the opening bell Tuesday after Trump ordered a new national security review of Nippon Steel's proposed $15 billion acquisition of the American company, The Associated Press reported. This decision follows a move by President Joe Biden to block the deal just before leaving office.

Trump instructed the Committee on Foreign Investment in the United States (CFIUS) to evaluate any national security risks posed by the proposed transaction. The review will give Nippon Steel and U.S. Steel an opportunity to address concerns raised during the evaluation process. CFIUS will submit its findings and recommendations within 45 days.

In 2023, Nippon Steel made a bid to acquire U.S. Steel, but the transaction became a political issue due to its potential impact on the state of Pennsylvania, home to U.S. Steel's headquarters. The United Steelworkers union raised concerns about job cuts and the company's financial practices, prompting Biden to block the merger, a stance that Trump had also previously opposed. The Japanese steelmaker responded by filing a federal lawsuit challenging the block.

Despite initial indications that Nippon Steel might abandon its acquisition plans, Trump suggested in February that the company would instead make a significant investment in U.S. Steel.

08:07 AM EDT
Trump to sign executive orders to support coal industry
Trump is expected to sign a series of executive orders Tuesday aimed at reviving the U.S. coal industry, Reuters reported, citing two sources familiar with the plan.

The orders, which will be signed at the White House, will direct the Interior and Energy Departments to take steps to support coal production and prevent the closure of aging power plants, one source said.

Coal once accounted for more than half of U.S. electricity generation but now makes up less than 20%, according to the Energy Information Administration.

Trump, who pledged during his campaign to boost domestic energy production, has consistently criticized environmental rules he says unfairly target coal. The White House has not released full details of the orders but confirmed the signing will take place at 3 p.m. Eastern.

07:54 AM EDT
OPINION: China can't win a trade war against the U.S. for one simple reason
Bad News for China
People walk past a screen showing Chinese stock market movements in Beijing on April 7. Asian equities collapsed on a black Monday on April 7. WANG ZHAO/AFP via Getty Images
President Donald Trump threatened an additional 50 percent tariff on Chinese goods if Beijing did not rescind by today its retaliatory 34 percent tariff imposed Friday.

The Chinese rate is the same as that Trump slapped on Chinese products on April 2.

The new rounds of American and Chinese tariffs are escalations. Trump in February and March imposed two rounds of 10 percent tariffs on China for its role in the fentanyl crisis. With these three rounds of additional tariffs and other measures, the effective U.S. rate on Chinese goods is about 65 percent. If he goes ahead with the 50 percent levy, the rate hits 115 percent.

China this year added retaliatory tariffs of 10 percent and 15 percent on certain American products.

The trade war is on. Who backs down?

"Anyone expecting President Xi to come calling and seek a call with President Trump following April 2 tariff announcement is being dangerously naive," the widely followed Ryan Hass of the Brookings Institution posted on X on Friday. "Anyone advising Trump that Xi will beg for forgiveness is committing malpractice. That is not the mood or the plan in Beijing now."

Read the full opinion piece by author and commentator Gordon C. Chang on Newsweek.

07:40 AM EDT
U.S. and China clash again as global leaders react to escalating tariffs
Tensions between the U.S. and China surged Tuesday as President Donald Trump threatened an additional 50% tariff on Chinese goods, prompting a sharp rebuke from Beijing. In response, China vowed to "fight to the end," accusing the U.S. of blackmail and vowing countermeasures.

The Chinese Commerce Ministry said the latest tariff threats expose the U.S.'s coercive tactics. Beijing's foreign ministry also criticized Washington for lacking sincerity in its approach to dialogue, saying future talks must be based on "equality and mutual respect."

Meanwhile, market turmoil triggered by the escalating trade war prompted global leaders to take action. Japan's Prime Minister Shigeru Ishiba formed a task force to mitigate the fallout of the 24% tariffs levied on Japanese exports. India's foreign minister urged progress on a trade deal with the U.S., while Malaysian Prime Minister Anwar Ibrahim advocated for "quiet engagement" through ASEAN channels.

Hong Kong's leader John Lee condemned the tariffs as "ruthless," vowing to expand free trade ties and align more closely with mainland China. As the trade dispute deepens, more countries are now seeking ways to minimize economic damage and navigate an increasingly fractured global trade environment.

07:27 AM EDT
How much does China charge the U.S. in tariffs?
Beijing recently announced a sweeping 34% tariff on all U.S. goods, mirroring the latest escalation from Washington. This comes on top of earlier 10-15% tariffs China imposed earlier this year on U.S. agricultural and energy exports. According to Morgan Stanley economist Robin Xing, the move has raised the U.S. average tariff rate on Chinese goods to as high as 65%. While the full cost to American exporters depends on the product, analysts say the new round of duties significantly intensifies the financial strain on both sides.

China's Ministry of Foreign Affairs said the country "will continue to take resolute measures" to protect its interests. That includes broader restrictions on U.S. companies operating in China and new export controls on rare earths and dual-use technology.

Beijing's retaliation marks a notable shift away from earlier restraint, raising the chances of prolonged tariff escalation with no near-term deal in sight.

07:14 AM EDT
Donald Trump's polling after 'liberation day' is disastrous for Republicans
Donald Trump Oval Office
U.S. President Donald Trump answers a reporter's question in the Oval Office of the White House on April 7, 2025 in Washington, DC. Kevin Dietsch/Getty Images
Amajority of American adults are deeply skeptical about President Donald Trump's new tariff policy according to a new YouGov survey, with more than half of those polled saying they regard the policy as "the largest peacetime tax hike in U.S. history."

Newsweek contacted the Republican National Committee for comment via online inquiry form on Tuesday outside of regular office hours.

The YouGov poll is a sign that the series of tariffs Trump has imposed since his second inauguration in January might have backfired politically and damaged the president and the Republican Party.

On Wednesday April 2, which Trump dubbed "Liberation Day," the president announced extensive new tariffs which credit ratings agency Fitch said will take them to their highest overall level since 1910.

Trump imposed a "baseline" 10 percent levy on all imports along with what he called "discount reciprocal tariffs" on dozens of countries, including a 34 percent levy on China, 25 percent on South Korea and 20 percent on the European Union.

This was on top of tariffs Trump announced on China, Mexico and Canada earlier in his presidency, and on Monday the president said the levy on Beijing would rise by an additional 50 percent in response to Chinese counter tariffs.

YouGov surveyed 1,139 adult U.S. citizens between April 3 and 6 with a four percent margin of error. The poll found 51 percent of Americans agreed that the tariffs are "the largest peacetime tax hike in U.S. history," split between 30 percent who said they "strongly agree" and 21 percent who "somewhat agree." By contrast, only 20 percent said they disagreed either strongly or somewhat, with the remainder not sure.

Read the full story by James Bickerton on Newsweek.

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