US President Donald Trump has defended his tariff policy, claiming it’s doing “really well” despite China’s recent hike of levies on US goods to 125%, sparking concerns in global markets.
Trump’s assertion comes after investors sold off US government bonds, causing the dollar to plummet and stocks to seesaw, as Beijing’s retaliation deepened concerns on already volatile global markets.
The US and China have been engaged in a spiraling trade war, with Trump announcing sweeping import taxes on dozens of trade partners last week, only to roll them back to 10% on Wednesday for 90 days while raising levies on Chinese goods.
“We are doing really well on our tariff policy,” Trump said in a post on his Truth Social network, adding that it’s “very exciting for America, and the World!!! It is moving along quickly.”
The White House later clarified that Trump remains hopeful about a deal with China, noting that 15 other countries have offers on the table during the 90-day pause in tariffs.
However, Press Secretary Karoline Leavitt emphasized Trump’s stance on retaliation, stating that when the US is “punched,” Trump will “punch back harder”.
Economic analysts predict Trump’s tariff proposals would raise costs for Americans and reduce the country’s economic growth, with some estimating a typical middle-income household’s costs could increase by over $2,600 annually.