President Donald Trump on Saturday called Americans “stricken” what he described as a difficult but pointless period of adjustment following his sweeping new tariff policy that reset the US trade strategy and caused a global market selling.
“We win. Hang, it’s not easy, but the end result is historic,” Trump wrote in capital letters. “We’re going to make America great again!!”
The message follows Trump’s April 2 speech from the White House where he declared an economic emergency and announced a 10% tariff on almost all imports. Approximately 60 countries identified by the administration as “worst criminals” have been revealed to have a trade imbalance with the United States, and a more steeper obligation to the approximately 60 countries identified by China as at the top of the list.
Certain taxes include 34% tariffs on Chinese imports (total tariffs rise to 54%), 46% in Vietnam, 24% in Japan and 20% in Europe. Global tariffs came into effect at 12:01am on Saturday, with higher target tariffs scheduled to begin on April 9th.
China responded swiftly on Friday with a 34% tariff on all US import duties, along with other retaliation measures. This includes potential limitations on the export of rare earth elements important to technologies such as electric vehicles and defense systems.
In response, Trump said China could not afford to retaliate and that his policies have already caused trillions of growth in new US investments and robust employment.
“China has been hit much harder than the US and isn’t even close,” Trump wrote. “They, and many other countries, have treated us unsustainable. We were stupid and helpless ‘whipposts’, but now we’re bringing our jobs and businesses back to life like we have before. Already, more than $5 trillion in investments, and it’s rising rapidly! ”
On Thursday, the day after the announcement, Wall Street saw a decline that was extended until Friday. The S&P 500 fell 6%, the Dow Jones fell 5.5%, and the Nasdaq slid 5.8% on April 4th.
When asked about the market selling, Trump compared the economy to a patient undergoing surgery.
“I think it’s going very well. There’s surgery, like when a patient has surgery, and that’s a big deal. I said this is exactly what it is,” Trump told reporters outside the White House on Thursday.
“Sit down, take it in and see what it goes, because there’s escalation when you retaliate. If you don’t retaliate, this is a high water mark.”
Bescent also spoke to Americans who are concerned about retirement savings amid a decline in the market, including a sharp decline in the 401(k) and IRA.
“We are set on the stage of long-term economic growth,” Bescent said. He added that massive government spending has set the country on an unsustainable path. “We were heading towards a financial crisis.”
While some countries have vowed to retaliate against Trump’s tariffs, others have taken a more cautious tone.
“We should avoid setting up a policy of anti-abuse that could be harmful to everyone, especially to us,” Italian Economy Minister Giancarlo Giorgeti said at a business forum held on Saturday in Cernobubio, Italy. “Our message is that we need to avoid pushing the panic button. …We follow a practical and rational approach.”
Members of the Trump administration have argued that US $1.2 trillion trade imbalance last year underscored the need for dramatic policy changes. Trump has long argued that other countries have used the US and that new tariffs are designed to restore fairness in global trade.
