Going very well: Trump stands by tariff policy amid market jitters, China blowback

Donald Trump has defended his on-again, off-again tariff policy, which has unleashed massive turmoil in stock markets and stoked fears of an all-out trade war between the US and China.

“We are doing really well on our TARIFF POLICY. Very exciting for America, and the World!!! It is moving along quickly,” the US President posted on Truth Social, expressing optimism over the strategy.

His remarks came just hours after Beijing upped tariffs on US imports to 125 per cent, retaliating against the Trump administration’s decision to impose steep new duties on Chinese goods. The tit-for-tat escalation has sent shockwaves through global markets over the past week.

US stocks ended the week higher after days of volatility, but gold prices surged to a record high. The dollar weakened sharply, indicating investor unease with US economic stability.

Trump’s top trade adviser Peter Navarro downplayed the impact of policy shifts on Wall Street and dismissed investor concerns.

“It’s just normal retracement after a big day. It’s no big deal,” Navarro told CNN on Thursday.

The President, too, dismissed the turbulence, insisting that his grand plan would ultimately strengthen the American economy and its currency.

“When people understand what we’re doing, I think the dollar will go way up,” Trump told reporters aboard Air Force One on Friday evening. “The bond market’s going good. It had a little moment but I solved that problem very quickly.”

The White House on Friday announced that duties on incoming Chinese goods were at 145 per cent now. Beijing hit back by ratcheting up its own tariffs on American goods. In his first reaction to the tariff tensions, Chinese President Xi Jinping signalled no intention of backing down, stating China was “not afraid” of a prolonged trade conflict.

White House Press Secretary Karoline Leavitt reinforced the administration’s combative stance: “The president made it very clear: When the United States is punched, he will punch back harder.”

Despite the growing uncertainty, the White House said more than 75 countries have expressed interest in negotiating trade deals with the US. India and Japan are reportedly among the nations making progress toward new agreements.

Trump predicted tariffs would eventually stabilise around 10 per cent as deals are struck, adding, “Once we finish trade deals with the countries that want to negotiate, it’s going to bring a lot of certainty.”

With Reuters inputs