Tensions are escalating as the trade standoff between China and the United States enters a new phase. US President Donald Trump has issued a fresh ultimatum to his Chinese counterpart, demanding that Beijing withdraw its 34% counter-tariff on American goods. If China refuses, Washington will impose an additional 50% tariff on imports from the country, Trump warned.

The tariff war is far from over. Markets and analysts are holding their breath as the world's two largest economies edge closer to a new escalation. Now the question dominating the headlines is who will blink first.

In his latest statement, the US president threatened to impose another wave of tariffs on Chinese goods. If Beijing refuses Washington's demand, an additional 50% tariff would be slapped on top of the existing 34% levies on all Chinese imports, as well as the 20% duties already in place. This could bring the total tariff burden on Chinese goods entering the United States to a staggering 100% or more.

Trump previously warned that any retaliation from Beijing would derail the ongoing talks. If China insists on further restrictions, all negotiations it has requested will be suspended, the president said. In contrast, the US remains open to dialogue with other countries seeking tariff exemptions, and those talks will begin "at the earliest opportunity."