WASHINGTON – President Donald Trump insisted Friday that his tariff policy was “doing really well” despite China hiking levies on US goods to 125 percent in the spiraling trade war between the world’s two biggest economies.
The White House said Trump remained “optimistic” about a deal with China, and added that 15 other countries have offers “on the table” during his 90-day pause in their tariffs.
But Press Secretary Karoline Leavitt added that “the president made it very clear, when the United States is punched he will punch back harder.”
Investors dumped US government bonds, the dollar tumbled and stocks seesawed after Beijing’s retaliation against Trump deepened concerns on already traumatized global markets.
Trump sent financial markets into a tailspin by announcing sweeping import taxes on dozens of trade partners last week, only to abruptly roll them back to 10 percent on Wednesday for 90 days — while raising levies on goods from China.
“We are doing really well on our tariff policy,” Trump said in a post on his Truth Social network after China announced its latest hike.
“Very exciting for America, and the World!!! It is moving along quickly,” he wrote.
The US and Beijing have been trading salvos of increasingly harsh tariffs since last week.
Chinese President Xi Jinping gave his first major comments on the tensions on Friday, with state media quoting him as saying his country was “not afraid.”
Xi also said the European Union and China should “jointly resist unilateral bullying practices” during talks with Spain’s Prime Minister Pedro Sanchez.
Beijing announced after Xi’s comments that new tariffs of 125 percent on US goods would take effect Saturday – almost matching the staggering 145 percent level imposed on Chinese goods coming into America.
A Chinese Commerce Ministry spokesperson said the United States bore full responsibility, deriding Trump’s tariffs as a “numbers game” that “will become a joke.”
But China’s finance ministry said tariffs would not go any higher in an acknowledgement that almost no imports are possible at the new level.
Trump had reiterated on Thursday that he was looking to do a deal with Xi despite the mounting tensions.
“He’s been a friend of mine for a long period of time. I think that we’ll end up working out something that’s very good for both countries,” he told reporters.
But American officials have made it clear they expect Xi to reach out first.
Pressure was growing on Trump, however, as markets continued to fret.
As investors fled the dollar, which is typically considered a key haven currency, Trump attempted to squelch fears on Friday.
“We’re the currency of choice. We’re always going to be… I think the dollar is tremendous,” Trump told reporters aboard Air Force One, after the dollar plunged to its lowest level against the euro in more than three years.
Editor’s Note: This is an updated article. Originally posted with the headline “Trump defends policy after China hits US with 125% tariffs.”