US President Donald Trump has defended the controversial tariff policies as China retaliates with a massive 34% levy on US goods.
Image: Se-Anne Rall/IOL
United States President Donald Trump has shown no indication of backing down from his extensive tariff plans, insisting through social media that "there is NO INFLATION”.
His posts come in the wake of a significant market downturn triggered by China's retaliatory measures against US goods.
“Oil prices are down, interest rates are down, food prices are down, there is NO INFLATION,” Trump said in a post on X (formerly Twitter) on Monday.
He positioned the US economy as one prepared to reap the benefits of his controversial tariffs on imported goods.
"The long-time abused USA is bringing in billions of dollars a week from the abusing countries on tariffs that are already in place," he added.
“This is despite the fact that the biggest abuser of them all, China, whose markets are crashing, just raised its Tariffs by 34%, on top of its long term ridiculously high Tariffs (Plus!), not acknowledging my warning for abusing countries not to retaliate.”
https://x.com/realdonaldtrump/status/1909258777380974625?s=46
The sharp rhetoric follows China's announcement that it will impose an eye-watering 34% levy on all US goods, starting April 10, a move that critics fear could plunge both economies into a deeper trade war.
Additionally, China has implemented export controls on seven rare earth elements vital for industries ranging from electronics to healthcare, signalling an escalation in conflict that could have far-reaching implications.
During a week marked by volatility, Asia's stock markets faced a significant sell-off. Investors responded to the news of heightened tariffs with a flurry of panic, sending Hong Kong's markets plummeting by 10%, with Tokyo and Taipei not far behind.
The sell-off became the worst day for global equities since the Covid-19 pandemic began, raising alarms about a potential recession stemming from the unresolved trade tensions.
Trump argued that previous administrations have allowed foreign nations, notably China, to exploit the US economy.
"They've made enough, for decades, taking advantage of the Good OL' USA! Our past 'leaders' are to blame for allowing this, and so much else, to happen to our Country. MAKE AMERICA GREAT AGAIN!”
Despite widespread calls for a more tempered approach to trade negotiations, Trump remained firm.
He called on Americans not to show weakness during this turbulent economic period, urging them to be strong.
“The United States has a chance to do something that should have been done DECADES AGO. Don't be Weak! Don't be Stupid! Don't be a PANICAN (A new party based on Weak and Stupid people!). Be Strong, Courageous, and Patient, and GREATNESS will be the result,” he added.
As the markets respond unfavourably to the developments, analysts speculate whether Trump's strategy is a calculated risk or misguided boldness.
"Sometimes you have to take medicine to fix something," Trump previously stated, justifying the bloodbath that has seen trillions wiped off company valuations.
simon.majadibodu@iol.co.za
IOL Politics