Daijiworld Media Network - Washington

Washington, Apr 4: US President Donald Trump stoked tensions with China on Friday, taunting Beijing over its response to his aggressive tariff measures and dismissing global market turmoil as an opportunity for Americans to "get rich."

"China played it wrong, they panicked – the one thing they cannot afford to do!" Trump wrote in all-caps on Truth Social, insisting that his policies would not change. His remarks came after China hit back with 34% tariffs on US imports and vowed to take legal action at the World Trade Organization while restricting exports of critical rare earth elements.

Despite the escalating trade war, Trump remained defiant, spending the weekend at his golf course in Palm Beach, Florida, while asserting that the US economy's sheer strength would compel foreign manufacturers to shift production to American soil.

Global financial markets reacted sharply, with Wall Street witnessing a steep selloff as the Dow Jones and S&P 500 dropped nearly 3%. European markets, including Frankfurt and London, plummeted over 4%, while Japan’s Nikkei closed down 2.8%.

The economic standoff has rattled investors, with concerns of a looming recession growing. However, US Commerce Secretary Howard Lutnick urged patience, stating, "Let Donald Trump run the global economy. He knows what he's doing."

The European Union, hit with a 20% tariff by Trump, is weighing countermeasures. EU trade chief Maros Sefcovic is engaging in talks with US counterparts but warned that the bloc "won't stand idly by" if no fair deal is reached. France and Germany are considering imposing a tax on American tech giants as part of their response.

Japanese Prime Minister Shigeru Ishiba called for a “calm-headed” approach after Trump slapped 24% tariffs on Japanese exports. Meanwhile, Canada swiftly retaliated with a similar levy on US imports.

Major automakers are already feeling the impact. Stellantis, the parent company of Jeep, Chrysler, and Fiat, has halted production at some Canadian and Mexican plants. Nissan announced plans to reduce production in the US and discontinue two models made in Mexico. However, Volvo Cars, owned by China’s Geely, signaled it would expand its US manufacturing operations.

With major economies bracing for further shocks, Trump's trade war strategy continues to polarize opinion, drawing praise from hardliners and criticism from those fearing a deepening global economic crisis.