US President Donald Trump escalated his trade war with China on Monday, threatening to impose new 50 percent tariffs on Chinese goods starting Friday, despite a global market meltdown that has sparked concerns of an impending recession.

Trump’s latest remarks came after Beijing retaliated with its own 34 percent duties on U.S. products, set to take effect Thursday. The U.S. president, speaking from the White House, chastised China for ignoring his previous warning not to retaliate against U.S. tariffs.

“I have great respect for China but they cannot do this,” Trump said, adding that the United States would impose further tariffs unless China backed down. “We are going to have one shot at this… It is an honor to do it,” he declared.

The threat of an additional 50 percent tariff, coupled with China’s 34 percent duties, could see total tariffs on Chinese goods rise to 104 percent this year, according to White House officials.

Global markets tumble

Trump’s aggressive trade policies continued to roil global markets, with Wall Street stocks finishing lower after a volatile trading session. The Dow Jones Industrial Average and the S&P 500 both closed down as investors reacted to the worsening trade tensions.

Hong Kong’s stock market experienced its worst day in nearly 30 years, collapsing by 13.2 percent. Tokyo also suffered significant losses, closing down nearly 8 percent, while Frankfurt fell as much as 10 percent before paring back some of its losses. Trillions of dollars in market value have been wiped out amid fears of a global recession.

China’s retaliation

Beijing responded to Trump’s comments, stating through its U.S. embassy that “pressuring or threatening China is not the right way to engage.”

As the trade war intensifies, the global economy remains on edge. Trump has repeatedly insisted that his tariffs are necessary to revive U.S. manufacturing by forcing foreign companies to relocate production to the United States. However, many economists remain skeptical, with some warning that the tariffs could lead to rising inflation and slowed economic growth.

No pause, no talks

Trump ruled out any pause in his tariff implementation, stating that he was "not looking" to delay the tariffs. Additionally, he announced the cancellation of any planned meetings with China to discuss the trade dispute, though he reiterated that the U.S. was open to negotiations with other countries.

“There can be permanent tariffs, and there can also be negotiations, because there are things that we need beyond tariffs,” Trump said during a meeting with Israeli Prime Minister Benjamin Netanyahu.

EU’s countermeasures

The European Union is also gearing up for a response. EU trade ministers met in Luxembourg on Monday to discuss their strategy, with France and Germany pushing for the imposition of a tax on U.S. tech giants. French Trade Minister Laurent Saint-Martin said that the bloc’s response should remain open to all options, including aggressive measures against U.S. companies.

However, divisions within the EU were evident, as Ireland’s trade minister, Simon Harris, warned that targeting services would be a dangerous escalation, particularly given Ireland’s reliance on U.S. tech and pharmaceutical firms attracted by its low corporate tax rates.

Inflation, recession, and political fallout

The fallout from Trump’s trade policies continues to raise concerns about inflation and a potential recession. JPMorgan Chase CEO Jamie Dimon warned that the tariffs could slow U.S. economic growth, while also adding pressure on consumer prices.

Trump’s supporters, including U.S. Senator Ted Cruz, have expressed concern that the economic effects of the tariffs could have a significant impact on American voters, particularly in swing states. Cruz warned that a recession could result in a "bloodbath" for Republicans in the upcoming mid-term elections.

As global markets remain volatile and tensions with China show no signs of easing, the economic consequences of Trump’s trade war are only beginning to unfold.