Donald Trump remarked that there will always be “transition issues” and “challenges” as markets dropped again amid ongoing uncertainty related to the US president’s global tariff initiatives.
His remarks on Thursday followed a White House announcement indicating that tariffs on certain Chinese goods would climb to 145% due to a previously established 20% tax on fentanyl production.
Nevertheless, Trump expressed optimism about reaching an agreement with China. “I believe we will come to a mutually beneficial arrangement. I’m looking forward to it,” he stated.
Simultaneously, markets experienced continued volatility on Thursday, in light of Trump’s recent 10% tariff declaration affecting all nations except China.
On Wednesday, Trump suspended his warning about imposing tariffs as high as 50% on nations labeled as “worst offenders,” but continued his trade battle with China.
China has not shown any intentions of retreating, having raised its retaliatory tariffs to 84% on American goods this week.
The three major US stock indices managed to recover some of their earlier losses on Thursday. By the end of the day, however, the S&P 500 fell by 3.6%, the Dow Jones by 2.5%, and the Nasdaq by 4.31%. Additionally, Warner Bros Discovery shares plummeted by 14% on Thursday, while Amazon and Apple both saw a decline of 7%.
During a televised cabinet meeting, Trump acknowledged that there would “always be transition challenges” but claimed it was “the biggest day in history for the markets.”
He noted that investors were satisfied with the current direction of the US economy and that they were “seeking fair treatment from the world.”
He asserted that “everyone is eager to negotiate a deal” to lower tariffs.
Supporting Trump’s claims, Commerce Secretary Howard Lutnick mentioned that numerous countries were initiating discussions and that they were presenting “offers that would not have been made” without the president’s policies.
“We are finally receiving the respect we deserve,” he added. “I believe we are going to witness historic agreements one after another.”
Trump stated that the US is “eager to negotiate a deal with China”, expressing “great respect for President Xi” and anticipating that they would “end up reaching an agreement that’s advantageous for both nations.”
However, he reiterated his assertion that China has “taken advantage” of the US and has “ripped off” the nation “more than anyone else” for an extended period.
China revealed plans to limit the quantity of American-made films screened in its theaters, claiming that the tariff conflict has dampened audience interest in Hollywood.
Currently, China restricts US film releases to 34 annually, and the relevance of Hollywood is declining as domestic films gain popularity.
Meanwhile, the European Union announced a halt to its planned countermeasures against the US set to begin on April 15, extending the pause for 90 days.
All EU member states, except Hungary, voted to instigate retaliatory tariffs on Wednesday if the US executed its 20% levy.
In her statement, European Commission President Ursula von der Leyen expressed that the EU aims to “allow negotiations an opportunity.”
