The Chinese decision sent shockwaves through global financial markets, resulting in a notable selloff of US government bonds, a decline in the value of the dollar, and erratic fluctuations in stock prices. These latest retaliatory actions from Beijing heightened investor unease, which had already been amplified by Trump’s unexpected announcement of broad tariffs on numerous US trading partners the week before.
While he reduced some tariffs to 10 percent for a 90-day duration on Wednesday, Trump increased levies on Chinese imports. “Our tariff policy is yielding great results,” he shared on Truth Social. “Very positive for America and the globe!!! It is progressing rapidly.”
The White House later conveyed Trump’s continued “optimism” about securing a deal with China. Press Secretary Karoline Leavitt pointed out that 15 other nations had proposals “available” during the 90-day suspension. She also emphasized that “the president made it very clear, if the United States is attacked, he will retaliate with greater force.”
The ongoing tit-for-tat tariff exchanges have escalated over the last week, with both Washington and Beijing implementing increasingly aggressive trade sanctions.
In his first significant reaction to the escalating tensions, Chinese President Xi Jinping stated that his nation was “not intimidated,” according to state media. During a discussion with Spanish Prime Minister Pedro Sanchez, Xi also called for the European Union and China to “collaboratively oppose unilateral bullying actions.”
