As global trade tensions heighten, the financial markets continue to experience significant volatility.

President Donald Trump has warned that if China does not remove its retaliatory tariffs by a deadline, the U.S. will impose an additional 50% tariff on Chinese goods.

The warning was issued during a meeting with Israeli Prime Minister Benjamin Netanyahu in the Oval Office.

Trump stated, "We will talk to China; I have a great relationship with Xi, but we are hopeful that it remains."

In response, a representative from the Chinese Embassy in Washington, Liu Pengyu, stated that China would not yield to threats, asserting that external pressures are not constructive in diplomatic relations.

Wall Street reflected the uncertain climate, closing with mixed results.

The Dow Jones Industrial Average decreased by 0.91%, settling at 37,965.60 points, while the NASDAQ saw a slight increase of 0.10% to 15,603.26 points.

The professional index, the S&P 500, also slipped, falling by 0.23% to 5,062.25 points, amid worries stemming from Trump's trade policies.

Trump further criticized U.S. trade deficits, especially highlighting a $350 billion trade deficit with the European Union, claiming the EU has been designed to harm American interests.

He mentioned potential permanent tariffs unless negotiations yield favorable outcomes for the United States.

Trump articulated grievances surrounding European regulations, arguing they create barriers to American businesses entering the market.

He stated, "They make rules that are designed to prevent you from selling in those countries.

We will not let that happen."

Meanwhile, discussions in the EU are underway regarding retaliatory tariffs against U.S. products, with reports indicating that duties could climb as high as 25% on selected items, excluding wine and dairy products.

This move is outlined in a draft prepared by the European Commission.

The implementation date for the initial set of tariffs is scheduled for April 15, with a secondary set by May 15.

The Italian government convened a meeting to address the trade war's implications, stressing that a trade conflict would not benefit either the EU or the U.S. Officials acknowledged the necessity of addressing the issues with pragmatism and caution to avoid significant economic damage.

Mixed reactions were observed in the Mexican government, where President Claudia Sheinbaum expressed reluctance to impose retaliatory tariffs on the U.S., affecting the steel and aluminum sectors, while still remaining open to negotiations.

Amid these developments, Wall Street’s volatility continued, with the VIX index, known as the ‘fear index,’ surging to its highest levels since the onset of the pandemic.

The index reflected increasing investor anxiety, rising 130% since early March.

Furthermore, the president has faced opposition within Congress regarding a proposed law aimed at limiting his ability to unilaterally impose tariffs, indicating a growing divide over trade policy among U.S. lawmakers.

The situation remains fluid as market participants closely monitor negotiations and potential retaliatory measures that could have widespread impacts on international trade and economic stability.