President Donald Trump is considering increasing import taxes on China by an additional 50%, while also preparing for negotiations with Japan and Israel, leading to confusion among markets regarding his intentions for his broad tariff plans.

Stocks experienced significant fluctuations as Trump made statements on social media about discussions with trade partners. Volatility further increased following a misleading report about a potential pause on tariffs, which the White House refuted.

Trump appears to be using a combination of incentives and penalties in his dealings with countries based on their responses. It remains uncertain whether this strategy will lead to a reduction in the initial 10% tariff announced or provide relief to approximately 60 nations facing even higher duties.

Recent tensions with China have intensified, with Trump threatening to impose an additional 50% tariff if China does not backtrack on its proposed 34% increase in response to US tariffs. This extra charge would be on top of the existing 34% duty set to begin soon, as well as a 20% levy imposed earlier in relation to fentanyl trafficking, potentially affecting imports from one of the US's main trading partners.

The Chinese embassy in Washington did not immediately comment on Trump's statement. The president seems determined to move forward with imposing tariffs on most US trading partners, with a 10% baseline tariff already in effect and higher levies slated for implementation soon.

Furthermore, the White House has threatened to veto a Senate bill that aims to limit the president's authority to impose tariffs, arguing that it could restrict foreign policy decisions and national security protection duties.