Trump Defends Policy Amid China’s 125% Tariff on US

Trump Responds to China’s 125% Tariff on American Goods

President Donald Trump has defended his administration’s trade policies following China’s decision to impose a 125% tariff on U.S. goods. This move by Beijing is a direct response to the U.S. increasing tariffs on Chinese imports to 145% earlier this year, a measure initially tied to concerns over China’s role in the fentanyl trade.

In response to the escalating trade tensions, President Trump stated that his tariff strategy is “doing really well,” asserting that the economic impact would be more detrimental to China than to the United States. ​

China’s Ministry of Commerce criticized the U.S. tariffs as economically unjustified, labeling them a “joke,” and indicated that it would not engage in further retaliatory tariff hikes.

Despite the heightened trade tensions, U.S. financial markets showed resilience. The Dow Jones Industrial Average surged by 619 points (1.6%) on Friday, marking a 5% gain for the week. Similarly, the S&P 500 and Nasdaq rose by 1.8% and 2.1%, respectively, reflecting investor optimism amid the ongoing trade dispute.

The escalating tariffs have raised concerns about potential disruptions to global trade, with the World Trade Organization warning of significant declines in international commerce if the dispute continues unresolved.