WASHINGTON — A wave of economic uncertainty swept across global markets Friday after former President Donald Trump’s aggressive new tariffs triggered swift retaliation from China and sent stock indices into a tailspin.
Brushing aside the financial fallout, Trump remained defiant on his Truth Social platform, declaring the turbulence a golden opportunity. “China PANICKED. They played it wrong!” he posted in a characteristically fiery message. “This is a great time to get rich.”
The US economy was rocked by the second consecutive day of market losses, with the Dow Jones Industrial Average plunging over 5.5 percent and the S&P 500 shedding nearly 6 percent. The broader global fallout was just as severe, with Asian and European exchanges following suit.
Federal Reserve Chairman Jerome Powell voiced concern that the escalating trade war could drag growth lower while pushing inflation higher — a combination many economists dread. Nevertheless, Trump, spending the weekend at his Palm Beach golf resort, promised no retreat: “My policies will NEVER change,” he proclaimed.
Meanwhile, China unveiled its own countermeasures: a sweeping 34 percent tariff on a slate of American goods, effective April 10. Beijing also threatened to curb the export of critical rare earth materials vital to industries like electronics and healthcare, and pledged to take its grievances to the World Trade Organization.
The European Union, hit with a 20 percent US tariff, warned it would not “stand idly by.” EU trade chief Maros Sefcovic said Europe would pursue a deliberate, collective response, hinting at potential taxes on American tech giants instead of immediate tariff retaliation.
In Japan, Prime Minister Shigeru Ishiba urged caution after Trump’s tariffs slapped 24 percent duties on Japanese exports. Yet in an unexpected twist, some automakers recalibrated quickly — Nissan hinted at scaling back US production, while Volvo, under Chinese ownership, said it would expand its American operations.
Back in Washington, Trump’s political adversaries pounced. Democratic Senator Amy Klobuchar criticized the administration for endangering American workers while the president “plays golf.” Even conservative allies like Senator Ted Cruz expressed concern that the escalating conflict could damage the economy and cost US jobs.
As pressure mounted, Trump publicly berated Federal Reserve Chair Powell, demanding a dramatic interest rate cut: “CUT INTEREST RATES, JEROME!” he thundered online, breaking presidential norms around Fed independence.
Signs of disruption continued to ripple outward: Nintendo announced a delay in preorders for its upcoming Switch 2 console, citing “changing conditions” linked to the uncertain trade landscape.
Despite the growing storm clouds, Trump remains convinced that short-term pain will translate into long-term gains — and that only the “weak” will falter.
