On Friday, April 11, President Donald Trump defended his escalating tariff policy, even as tensions with China deepened. Trump insisted that the United States was “doing really well” despite China announcing a sharp increase in tariffs on American goods to 125 percent, further escalating the trade war between the two largest economies.
The move sent global markets into turmoil, with investors quickly selling U.S. government bonds, causing the dollar to drop and stock prices to fluctuate. This comes after Trump introduced sweeping import taxes on multiple trade partners, though the tariffs on Chinese goods were raised, prompting retaliation from Beijing.
Trump wrote on Truth Social that the U.S. was “doing really well” with its tariff policy, calling it “very exciting for America, and the World!!!” The White House also stated that Trump remained optimistic about reaching a trade deal with China, despite the rising tensions. Press Secretary Karoline Leavitt added that Trump would continue to push back if the U.S. was provoked.
In response, Chinese President Xi Jinping stated that China was “not afraid” of the trade standoff, calling for the European Union to “jointly resist unilateral bullying practices.” China’s Commerce Ministry confirmed the 125 percent tariffs on U.S. goods would take effect on Saturday, April 12, following the U.S.’s own tariff increases to 145 percent on Chinese imports.
Despite harsh rhetoric, Trump maintained hope for a deal with Xi, describing him as a longtime friend. U.S. officials expect China to make the next move toward resolution.
The ongoing standoff has triggered concerns over its impact on the global economy. The Federal Reserve warned that the tariffs could lead to higher inflation and slower economic growth. Economists caution that prolonged trade disruptions may increase consumer prices and raise the risk of a global recession.
In Europe, leaders are preparing for discussions with China, including a major summit in July, while the EU also considers countermeasures, including possible tariffs on digital services that could affect major U.S. tech companies.