Trump Claims China Overreacted; Markets Decline Further
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Synopsis
On April 4, President Trump accused China of panicking by matching his tariffs with a 34% levy on US imports. As a result, US markets plummeted, with major indices losing over 3%. This situation raises questions about trade negotiations and future tariffs.
Key Takeaways
- Trump's tariffs have led to a significant market decline.
- China retaliated with a matching 34% tariff.
- Major US indices dropped over 3% in response.
- Trump believes tariffs give the US negotiating power.
- Aides assert tariffs are not open for negotiation.
Washington, April 4 (NationPress) US President Donald Trump stated on Friday that China had “panicked” by responding to his reciprocal tariff with a corresponding tax of 34 percent on all imported goods from the United States.
The market chaos intensified with the news of China's counteraction. All significant US indices fell by over 3 percent during morning trading, with the tech-heavy Nasdaq Composite plunging by 4 percent, and the Wall Street Journal reported that it was on track to enter a bear market, indicating a decline of more than 20 percent from its recent peak.
Trump revealed a 34 percent tariff on imports from China on Wednesday, alongside tariffs on all of America's trading partners, including a 26 percent levy on India. A baseline rate of 10 percent has been applied to all trading partners, with countries such as China, India, Japan, and the EU facing higher rates.
“China played it wrong, they panicked - the one thing they cannot afford to do!” the American President expressed on Truth Social, his social media platform.
The implied suggestion seemed to be that the president either anticipated or preferred that Beijing opt for negotiation instead of retaliation.
“Well, it depends,” he remarked when asked by a reporter on Thursday if he was open to negotiations.
“If someone promised us something truly remarkable, as long as they give us something in return, that’s beneficial.”
Earlier, he noted: “The tariffs provide us with significant leverage for negotiations. I've successfully utilized them in my first administration, as you observed, but now we're elevating it to an entirely new level, because it's a global situation, and it's thrilling to see.”
However, his stance appeared to contradict his senior aides, who stated that these tariffs are non-negotiable.
“I don’t believe there’s any chance… that President Trump will retract his tariffs,” Howard Lutnick, secretary of commerce and a principal architect of the president’s tariffs, commented on Thursday. “The world should cease exploiting the United States of America.”
Top trade advisor Peter Navarro stated to a media outlet that the tariffs are “not a negotiation.”
