Trump asks Americans to ‘hang tough’ amid market crash, China’s return fire

“This is an economic revolution, and we will win,” he continued. “Hang tough, it won’t be easy, but the end result will be historic.”

His remarks came as the broadest set of US tariffs to date officially took effect, which imposes a 10 percent “baseline” tariff on most imports into the United States. Goods from Mexico and Canada are exempt, as Trump invoked emergency economic powers to address what he described as long-standing trade imbalances.

Trump’s announcement of tariffs on Wednesday sent shockwaves through global stock markets. Wall Street plunged on Friday, erasing $5 trillion in market value from S&P 500 companies by the close of trading on Friday — marking a record two-day loss. Oil and commodity prices also tumbled as investors rushed toward the relative safety of government bonds. This came after steep losses in Asian and European markets.

While the tariffs are expansive, some sectors were temporarily spared. The new measures don’t include previously announced 25% duties on steel, aluminum, and autos. Also exempt — for now — are copper, pharmaceuticals, semiconductors, lumber, some critical minerals, and energy products, according to the White House. However, copper and lumber remain under investigation, which could lead to future tariffs.

Higher “reciprocal” tariff

At 12.01 ET on Wednesday, Trump’s higher “reciprocal” tariff rates of 11% to 50% are due to take effect on around 60 US trading partners — including the India, European Union, Japan, and China — with rates tailored to each country.

China, in particular, has been hit hard. A new 34% US tariff on Chinese goods is set to take effect next week, prompting Beijing to announce an equivalent 34% tariff on US imports starting April 10. China also plans to file a complaint at the World Trade Organisation (WTO) and restrict exports of rare earth elements critical to advanced electronics and medical technologies.

“China has been hit much harder than the USA, not even close,” Trump wrote on Truth Social. “They, and many other nations, have treated us unsustainably badly.”

Other major trading partners have responded more cautiously, choosing to monitor the situation amid growing fears of a global recession.

EU trade chief Maroš Šefčovič said the European Union, facing a 20% tariff, will respond in a “calm, carefully phased, unified way,” but added that the bloc “won’t stand idly by.” France and Germany are reportedly considering a digital tax targeting US tech giants in response.

Japan, which was hit with a 24% tariff on its goods, urged a “calm-headed” approach, hoping to avoid further escalation.

Trump said he held a “very productive” call with Vietnam’s leader after announcing a massive 46% duty on imports from the Southeast Asian manufacturing hub. Vietnam has already pledged to reduce tariffs and increase US goods purchases in hopes of averting a trade crisis.