Tariff Watch: Trump Defends Current Scheme and Vows Further Hikes

Trade War Escalates as Trump Celebrates Price Drops, Floats Higher Tariff Regime Against China

The global trade war spurred by the reciprocal tariff scheme enacted by the Trump administration has had a series of positive effects on the U.S. economy, even if it has also caused turmoil in stock markets worldwide.

President Donald Trump remarked on the achievements of this tariff policy on social media, declaring that several issues had already been resolved with its implementation.

Remarking on the need to cut interest rates, Trump declared:

Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is no inflation, and the long time abused USA is bringing in billions of follars a week from the abusing countries on tariffs that are already in place.

Furthermore, Trump reiterated that China will also need to negotiate with the U.S and drop its most recent 34% tariff hike or face consequences. “If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump stressed, remarking that if this happened, all talks with China would be terminated.

So far, Beijing has not shown signs of withdrawing these new tariffs. Instead, the Asian behemoth has raised the bets. Through a spokesperson, the Chinese Ministry of Commerce vowed to continue fighting this trade war until the ultimate consequences.

“The US threat to escalate tariffs on China is a mistake on top of a mistake, which once again exposes the blackmail nature of the US. China will never accept it. If the US insists on its own way, China will fight to the end,” the Ministry declared, calling the U.S.’s behavior “typical bullying.”

Read more: Fed Triggers Alarm: Tariff Explosion Could Ignite Runaway Inflation Spiral