President Donald Trump vowed Friday that his economic policies “will never change” and lashed out at China for retaliating against his new tariff regime, raising the stakes in an escalating trade standoff that has sent shockwaves through global markets.
“CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO!” Trump wrote on social media, hours after Beijing announced a 34% tariff on all American goods in response to Washington’s own sweeping tariff hike.
While the president did not announce any new countermeasures, he has previously warned that he would escalate further if other countries respond with tariffs of their own.
“TO THE MANY INVESTORS COMING INTO THE UNITED STATES AND INVESTING MASSIVE AMOUNTS OF MONEY, MY POLICIES WILL NEVER CHANGE. THIS IS A GREAT TIME TO GET RICH, RICHER THAN EVER BEFORE!!!” he said in a separate post.
Trump’s tone contrasted with recent statements from top administration officials, some of whom have indicated that Washington could be open to negotiations with trade partners.
But the president’s declarations suggest little appetite for compromise. Late Thursday, he said he might reduce tariffs if other nations offered something “phenomenal.”
Markets reacted sharply. Global stocks dropped, oil prices fell to a four-year low, and bonds rallied as investors fled risk.
The selloff came amid renewed fears that the tit-for-tat tariff war could push major economies toward recession.
US stocks take a dive
The stock market extended its losses on Friday after China announced new tariffs on US goods, intensifying concerns that a trade war could push the global economy into recession.
The Dow Jones Industrial Average fell 1,130 points, or 2.8%, following a 1,679.39-point drop on Thursday.
The S&P 500 declined 3.2%, building on Thursday’s 4.84% slide.
The Nasdaq Composite shed 3.5% after a 6% drop the previous session, as tech companies with significant exposure to China continued to face pressure.
Technology stocks led the declines again.
Apple fell more than 3% on Friday. Nvidia dropped 5%, while Tesla lost 6%.
All three have substantial business in China and are among the most affected by Beijing’s retaliatory tariffs.
Bank stocks also weakened on rising concerns over a potential U.S. economic slowdown.
Morgan Stanley fell 6%, Goldman Sachs declined 5.7%, Citigroup dropped 8%, JPMorgan Chase lost 6%, and Wells Fargo slipped 5%.
Trump celebrates jobs data
Trump appeared buoyed by new US jobs data released earlier in the day.
Nonfarm payrolls rose by 228,000 in March, beating forecasts and giving the White House another talking point as it defends its aggressive trade posture.
“GREAT JOB NUMBERS, FAR BETTER THAN EXPECTED. IT’S ALREADY WORKING,” Trump posted.
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