Trump, undeterred by tumbling US markets, claimed the tariffs are bringing in “almost $2 billion a day” and insisted they will revive American manufacturing by encouraging companies to relocate to the US He sharply criticized past trade policies and signed orders for additional duties on pharmaceuticals and low-value Chinese imports, effective next month.
Beijing, vowing to “fight to the end,” has hit back with tariffs of its own and moved to weaken the yuan for the fifth straight day, sending it to a record low against the dollar. The standoff has triggered sharp market sell-offs, with Asia’s indexes plunging again Wednesday—Hong Kong dropped over 3%, and Japan’s Nikkei fell 2.7%. Currencies in the region, including South Korea’s won, also took a hit.
Meanwhile, the EU urged restraint, with Commission President Ursula von der Leyen stressing the need to avoid further escalation in a call with Chinese Premier Li Qiang. China responded with confidence, saying its economy could withstand the pressure.
Elsewhere, Canada announced retaliatory tariffs on US auto imports beginning Wednesday. The EU also prepares its own response to new 20% tariffs, with French President Emmanuel Macron warning Trump to reconsider: “If the EU must respond, so be it.”
Oil prices also slid, with West Texas Intermediate crude dropping below $60 a barrel for the first time since April 2021.
Despite the turmoil, Trump struck a defiant tone at a Republican dinner: “These countries are calling us up, kissing my ass,” he said, claiming foreign governments were desperate for a deal.
