U.S. President Donald Trump taunted a “panicked” China on Friday following its retaliation against his tariffs, brushing off the stock market turmoil arising from the escalating global trade war and claiming it presents an opportunity to “get rich.”
“China played it wrong; they panicked—the one thing they cannot afford to do!” Trump posted on Truth Social, using his characteristic all-caps style.
For the second consecutive day, markets experienced sharp declines, erasing significant amounts from investment and retirement portfolios.
Wall Street opened to considerable sell-offs, with the Dow Jones and S&P 500 both dropping nearly three percent. European markets also suffered, with Frankfurt and London falling more than four percent, while Tokyo’s Nikkei ended the day down 2.8%.
Trump, who introduced a series of import duties against various countries on Wednesday, remained steadfast in his approach, asserting that “my policies will never change.”
“This is a great time to get rich, richer than ever before,” he tweeted.
While spending a long weekend golfing at his Palm Beach, Florida course, the 78-year-old Republican is relying on the premise that the strength of the U.S. economy will compel foreign companies to shift manufacturing to the United States rather than importing goods.
In response, China announced its own new tariffs of 34% on U.S. imports, set to commence on April 10. Beijing signaled its intention to file a complaint against the United States with the World Trade Organization (WTO) and to limit exports of rare earth elements critical for high-end medical and electronics technologies.
Other major U.S. trading partners are currently evaluating their positions amid the escalating international conflict and rising recession fears. European Union (EU) trade chief Maros Sefcovic was scheduled to consult with U.S. officials on Friday.
Sefcovic indicated that the EU, which Trump has imposed a 20% tariff on, will proceed in a “calm, carefully phased, unified manner” and will allow time for negotiations. He cautioned that the bloc “won’t stand idly by if we are unable to reach a fair deal.”
The EU is contemplating its options, with France and Germany suggesting that the 27-country EU could consider imposing taxes on U.S. tech firms. Economy Minister Eric Lombard encouraged French companies to exhibit “patriotism,” emphasizing President Emmanuel Macron’s view that it would send the wrong message to proceed with investments in the U.S.
Lombard stated that the EU’s response wouldn’t necessarily involve reciprocal tariffs and could involve other strategies, such as data exchange and tax measures. “The response can be very strong, but we should avoid matching the U.S. directly, as it might have negative repercussions in Europe,” he remarked on Business FM Television (BFM TV).
In Japan, Prime Minister Shigeru Ishiba called for a “calm-headed” approach after Trump imposed a 24% tariff on Japanese-made goods.
Separate U.S. tariffs of 25% on all foreign-made cars also took effect this week, prompting Canada to implement similar levies on U.S. imports.
Stellantis—the owner of Jeep, Chrysler, and Fiat—has paused production at certain assembly plants in Canada and Mexico. Nissan, a Japanese automaker, announced plans to adjust production in the United States and will cease selling two vehicle models in the U.S. market that are made at a factory in Mexico.
Volvo Cars, owned by China’s Geely, indicated it would increase production of vehicles in the U.S. and is likely to manufacture an additional model there.
Amid widespread protests internationally and concerns from some of Trump’s own Republican supporters about potential price increases at home, Commerce Secretary Howard Lutnick urged patience. “Let Donald Trump run the global economy. He knows what he’s doing,” Lutnick asserted during an interview on CNN.
