Markets plunge as US-China confrontation escalates
\n WASHINGTON
\nPresident Donald Trump claimed victory over Europe in the US tariffs war but acknowledged a \u201ccost\u201d to his surging trade offensive against superpower rival China as markets plunged again Thursday.
\nTrump sought a victory lap at a White House cabinet meeting, saying the European Union had backed off from imposing retaliatory tariffs because of his tough stance on China.
\n\u201cThey were very smart. They were ready to announce retaliation. And then they heard about what we did with respect to China… and they said, you know, \u2018We\u2019re going to hold back a little bit,\u2019\u201d he said.
\nTrump acknowledged \u201ca transition cost and transition problems,\u201d but dismissed global market turmoil. \u201cIn the end it\u2019s going to be a beautiful thing.\u201d
\nTreasury Secretary Scott Bessent was upbeat, even as Wall Street encountered dramatic turbulence, the Nasdaq briefly dropping more than six percent.
\n\u201cI don\u2019t see anything unusual today,\u201d Bessent told reporters, touting better than expected US inflation numbers and other economic indicators.
\nThursday\u2019s market losses followed giddy gains on Wednesday in the aftermath of a stunning Trump climbdown, where he maintained a 10 percent blanket tariff on most countries but paused plans for tariffs of 20 percent on the EU and even higher levies on multiple other trade partners.
\nThe dialing back of the planned global trade war left most of the focus on China, the world\u2019s number two economy after the United States.
\nThe White House on Thursday clarified that levies on Chinese imports are now at a staggering total of 145 percent\u0097not the previously reported 125 percent.
\nThis was because the latest tariff hike comes on top of a 20 percent tariff already imposed earlier. China has retaliated with levies of 84 percent on US imports.
\nTrump says he wants to use tariffs to reorder the world economy by forcing manufacturers to base themselves in the United States and for other countries to decrease barriers to US goods.
\nHoward Lutnick, his commerce secretary, was bullish, posting on social media Thursday that \u201cthe Golden Age is coming. We are committed to protecting our interests, engaging in global negotiations and exploding our economy.\u201d
\nAmid questions over how far Trump is ready to push, the European Union welcomed the US president\u2019s partial row-back on his original threat to impose 20 percent tariffs against the bloc.
\nThe 27-nation grouping responded with its own olive branch, suspending for 90 days tariffs on 20 billion euros\u2019 worth of US goods that had been greenlit in retaliation to duties on steel and aluminum.
\n\u201cWe want to give negotiations a chance,\u201d EU chief Ursula von der Leyen said in a statement.
\nShe warned, however, that \u201cif negotiations are not satisfactory, our countermeasures will kick in\u201d and that all options remain on the table.
\nTrump likewise warned that the partial thaw could return to deep freeze after a 90-day truce period.
\n\u201cIf we can\u2019t make the deal we want to make… then we\u2019d go back to where we were,\u201d he said.
\nCanadian Prime Minister Mark Carney called Trump\u2019s reversal a \u201cwelcome reprieve\u201d and said Ottawa would begin negotiations with Washington on a new economic deal after elections on April 28.
\nVietnam said it had agreed with the United States to start trade talks, while Pakistan is sending a delegation to Washington.
\nIn its latest measure, Beijing announced it would reduce the number of Hollywood films imported, but said it remained ready for dialogue.
\n\u201cWe hope the US will meet China halfway, and, based on the principles of mutual respect, peaceful coexistence and win-win cooperation, properly resolve differences through dialogue and consultation,\u201d Commerce Ministry spokeswoman He Yongqian said.
\nTrump brushed off Beijing\u2019s clampdown on US films, saying, \u201cI think I\u2019ve heard of worse things.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Markets plunge as US-China confrontation escalates WASHINGTON President Donald Trump claimed victory over Europe in the US tariffs war but acknowledged a \u201ccost\u201d to his surging trade offensive against superpower rival China as markets plunged again Thursday. Trump sought a victory lap at a White House cabinet meeting, saying the European Union had backed off […]<\/p>\n","protected":false},"author":2,"featured_media":409879,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-471940","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"yoast_head":"\n