U.S. President Donald Trump stood resolute Saturday, championing his sweeping new tariffs on global trade despite a market meltdown and looming retaliation.
In a Truth Social post, he warned Americans of tough times but pledged “historic” investment and jobs. “We’ve been the world’s whipping post not anymore,” he wrote. “This is an economic revolution. Hang tough; it’ll be worth it.”
The tariffs started with a 10% baseline on most U.S. imports at midnight, sparing Mexico and Canada under Trump’s emergency economic powers. A steeper 34% levy on Chinese goods hits April 9, prompting Beijing’s swift 34% counter-tariff and a World Trade Organization lawsuit. China also plans to curb rare earth exports, which will be a blow to the tech and medical sectors. “They’ve hit us harder, and they’re vulnerable now,” Trump fired back, eyeing a 54% total rate on China by next week.
The fallout’s already seismic. Wall Street cratered Friday, shedding 5% off the S&P 500, with Asia and Europe in tow as economists flag inflation and growth risks. Britain’s Keir Starmer and France’s Emmanuel Macron hinted at fierce responses, saying, “Nothing’s off the table” while urging calm. The EU’s Maros Sefcovic promised a “unified” stance, eyeing U.S. tech taxes, and Japan called for cool heads amid its 24% hit. Oxford Economics warns of a 24% average U.S. tariff rate echoing the 1930s Smoot-Hawley disaster if retaliation escalates.
Trump’s carve-outs skip steel, autos (already at 25%), copper, drugs, chips, and energy, but probes into copper and lumber hint at more levies soon. Canada and Mexico dodge this round, tied to separate 25% duties over immigration and drugs. Markets brace for worse—Stellantis paused plants, and Goldman Sachs slashed growth forecasts. Yet, Trump sees a golden era ahead—if the world can weather the storm.
