WASHINGTON, D.C. – U.S. President Donald Trump on Friday asserted that his controversial tariff policy was “doing really well,” despite China retaliating with a dramatic increase in levies on US imports.
This move, part of the ongoing trade war between the world’s two largest economies, saw Chinese tariffs rise to 125 percent on American goods, further heightening uncertainty in global financial markets.
The escalating trade conflict has sent shockwaves through international markets.
Investors pulled back from US government bonds, the dollar fell sharply, and stock markets experienced significant volatility in response to the worsening tensions.
Trump, undeterred, took to his Truth Social network to maintain a positive outlook, writing, “We are doing really well on our tariff policy,” after China’s announcement of the increased tariffs.
“Very exciting for America, and the World!!! It is moving along quickly,” he added, attempting to reassure the public despite market turmoil.
The tariff hikes are the latest chapter in a series of aggressive economic measures between the US and China.
Trump initially announced broad import taxes on numerous trade partners last week, only to dial them back to 10 percent for 90 days.
However, he raised tariffs on Chinese goods, signaling his firm stance in the ongoing trade negotiations. T
he White House has since stated that Trump remains “optimistic” about striking a deal with China, though Press Secretary Karoline Leavitt emphasized that the president would “punch back harder” if the US is further provoked.
On the other side, Chinese President Xi Jinping dismissed US actions, declaring that his country “is not afraid” of the escalating trade war.
In a statement made Friday, Xi called for global resistance to “unilateral bullying practices” and emphasized solidarity with the European Union in opposing US tariffs.
In a move likely to deepen the dispute, China announced new tariffs of 125 percent on American goods, nearly matching the 145 percent tariffs the US has imposed on Chinese imports.
Chinese officials framed the decision as a direct response to Trump’s policies, dismissing his approach as a “numbers game” and suggesting that such actions would ultimately become a “joke.”
However, the Chinese Finance Ministry acknowledged that at such high tariff levels, trade between the two nations could be nearly impossible.
Despite the rhetoric, Trump maintained that he hoped to reach a deal with Xi.
“He’s been a friend of mine for a long period of time,” Trump told reporters, expressing confidence that both countries could eventually work out a favorable agreement.
However, US officials have made it clear that they expect Xi to initiate any further negotiations.
The economic impact of the tariff war has been felt widely, with investors growing increasingly concerned.
The US dollar plunged to its lowest level against the euro in more than three years, and yields on US government bonds—typically a safe haven during times of economic instability—rose as investors moved away from US assets.
While Wall Street stocks ended the week on a positive note, the broader economic outlook remains uncertain.
Policymakers at the US Federal Reserve have warned that the ongoing trade conflict could lead to higher inflation and slower economic growth, particularly if tariffs continue to rise.
Economists are increasingly concerned about the long-term effects of the trade war.
The disruption to the closely interlinked US and Chinese economies is expected to drive up consumer prices and could potentially trigger a global recession.
Analyst Ipek Ozkardeskaya of Swissquote Bank remarked that the tariffs had reached such high levels that they had “lost all sense,” with China now “ready to go as far as needed” in response to US pressure.
While the US and China square off, the rest of the world is watching closely.
Trump has acknowledged the European Union’s decision to hold off on retaliatory tariffs, praising their strategic restraint.
However, EU officials have made it clear that they have a range of countermeasures ready, including potential actions against US tech firms, which could escalate the transatlantic trade dispute.
