By Gloria Nosa
Effizzie Offshore Correspondent
Trump Defends Tariff Policy Amid Escalating U.S.-China Trade War
President Donald Trump on Friday, April 11, defended his administration’s escalating tariff strategy as tensions between the United States and China intensified. His remarks came shortly after Beijing announced a sharp increase in tariffs on American goods—raising levies to 125 percent—further deepening the trade standoff between the world’s two largest economies.
The move sent shockwaves through global financial markets. Investors reacted swiftly, selling off U.S. government bonds, causing a drop in the dollar, and triggering volatility in stock markets. The turmoil follows Trump’s announcement last week of broad import tariffs on multiple countries. Although the administration later reduced some of those tariffs to 10 percent for a 90-day grace period, levies on Chinese imports were raised, prompting swift retaliation from China.
“We are doing really well on our tariff policy,” Trump posted on Truth Social. “Very exciting for America, and the World!!! It is moving along quickly.” The White House later reiterated the president’s optimism, saying he remained hopeful about striking a trade deal with China. Press Secretary Karoline Leavitt emphasized that Trump would not back down. “The president made it very clear—when the United States is punched, he will punch back harder,” she said.
Over the past week, both nations have exchanged increasingly aggressive tariff measures. On Friday, April 12, Chinese President Xi Jinping addressed the conflict publicly for the first time, stating that China was “not afraid” and calling on the European Union to “jointly resist unilateral bullying practices.” His comments were made during a meeting with Spanish Prime Minister Pedro Sanchez.
Following Xi’s remarks, China’s Commerce Ministry announced that the new 125 percent tariffs on U.S. goods would take effect on Saturday, April 12. The United States had already raised its own tariffs on Chinese imports to 145 percent. A spokesperson for China’s Commerce Ministry blamed Washington for the current stalemate and dismissed Trump’s approach as “a numbers game” that “will become a joke.” Despite the aggressive tone, China’s Finance Ministry indicated that no further tariff hikes were planned, suggesting the current levels had already rendered most U.S. imports uneconomical.
Despite the rising tensions, Trump expressed confidence that a resolution could still be reached. “President Xi has been a friend of mine for a long time,” he told reporters. “I think we’ll end up working out something very good for both countries.” U.S. officials, however, said they expect China to make the next move toward de-escalation.
Meanwhile, economic pressure is mounting on the Trump administration. On Friday, bond yields climbed again, reflecting investor anxiety and diminishing demand for typically safe-haven assets like U.S. Treasuries. The White House noted that there was no indication China was selling off its significant holdings of U.S. debt, a move that could raise borrowing costs for the American government.
The Federal Reserve issued a warning, cautioning that the president’s tariff strategy could drive up inflation and slow economic growth. Economists echoed those concerns, noting that continued disruption in U.S.-China trade relations could lead to higher consumer prices and elevate the risk of a global recession.
Swissquote Bank analyst Ipek Ozkardeskaya told AFP that the current tariff levels are “so high that they don’t make sense anymore,” but added that China appears prepared to “go as far as needed.”
While much of the world watches with caution, the European Union is preparing for its own negotiations with China. A high-level EU-China summit is scheduled for July, marking 50 years of diplomatic relations. Ahead of that, EU trade chief Maros Sefcovic will meet with U.S. officials in Washington on Monday.
European Commission President Ursula von der Leyen, speaking to the Financial Times, said the EU was ready with “a wide range of countermeasures,” including tariffs on digital services that could impact major American tech firms.
