Trump threatens additional tariffs on China, terminates talks

"Additionally, all talks with China concerning their requested meetings with us will be terminated! Negotiations with other countries, which have also requested meetings, will begin taking place immediately," Trump said in a post on Truth Social.

A global trade war touched off by U.S. President Donald Trump's sweeping tariffs escalated further on Monday, as Trump threatened to increase duties on China and the European Union proposed counter-tariffs of its own.

Financial markets across the globe posted a third day of losses as investors worried that steep trade barriers around the world's largest consumer market could lead to a recession. The S&P 500 closed lower after a rollercoaster session in which it touched its lowest level in more than a year.

Trump said the tariffs - a minimum of 10% for all U.S. imports, with targeted rates of up to 50% - would help the U.S. recapture an industrial base that he says has withered over decades of trade liberalization.

"It's the only chance our country will have to reset the table. Because no other president would be willing to do what I'm doing, or to even go through it," he told reporters at the White House. "Now, I don't mind going through it because I see a beautiful picture at the end."

Trump spoke hours after he ratcheted up a confrontation with China, the world's No. 2 economy.

Trump said he would impose an additional 50% duty on U.S. imports from China on Wednesday if it did not withdraw the 34% tariffs it had imposed on U.S. products last week. Those Chinese tariffs had come in response to 34% "reciprocal" duties announced by Trump.

The European Commission, meanwhile, proposed counter-tariffs of 25% on a range of U.S. goods, including soybeans, nuts and sausages, though other potential items like bourbon whiskey were left off the list, according to a document seen by Reuters.

Officials said they stood ready to negotiate a "zero for zero" deal with Trump's administration. "Sooner or later, we will sit at the negotiation table with the U.S. and find a mutually acceptable compromise," EU Trade Commissioner Maros Sefcovic said at a news conference.

The 27-member bloc is struggling with tariffs on autos and metals already in place, and faces a 20% tariff on other products on Wednesday. Trump has also threatened to slap tariffs on EU alcoholic drinks.

Trump said his administration would open trade talks with Japan, one of Washington's closest allies in Asia, and administration officials say dozens of other countries have reached out as well with the hope of heading off the tariffs as high as 50% due to take effect on Wednesday.

The back-and-forth injected further turbulence into global financial markets, which have fallen steadily since Trump's announcement.