- Trump urged Americans to “be cool” as sweeping global tariffs, including a 104% duty on Chinese imports, went into effect.
- The EU, calling the U.S. tariffs “unjustified,” plans to strike back with its own levies starting April 15.
- Stocks bounced slightly Wednesday, but markets remain jittery as questions swirl over whether the tariffs will become permanent.
As the markets continue to reel from an escalating trade war, President Donald Trump has taken to his Truth Social account to try and ease investor anxiety—with, well, a little all-caps optimism.
“THIS IS A GREAT TIME TO BUY!!!” Trump posted early Wednesday.
“BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!”
Tariff Chaos Goes Global
These upbeat words come on the heels of a dramatic new phase in the trade war. As of midnight, the U.S. slapped a whopping 104% tariff on imports from China. In response, China fired back—hard—with its own 84% tariff on U.S. goods.
But that’s not all. Reciprocal tariffs rolled out across more than 180 countries, affecting pretty much everyone. Vietnam got hit with a 46% rate, the EU with 20%, Japan at 24%, and Taiwan 32%, just to name a few.
Europe isn’t taking this lying down. The EU officially signed off on its own retaliation package today.
“The EU considers US tariffs unjustified and damaging,” read a statement from the European Commission, warning of “economic harm to both sides.” Their tariffs are set to kick in on April 15—unless some kind of deal gets made before then.
Can These Tariffs Stick Around?
Trump, for his part, hasn’t ruled out the idea of tariffs becoming more or less permanent. “Tariffs can be permanent, and we can still negotiate,” he said recently, sounding very much like someone who wants to have his cake and eat it too.
He continues to tout the revenue tariffs are bringing in, claiming the U.S. Treasury is raking in billions (though official numbers don’t always support those claims).
Market Bump—or Just a Bounce?
Interestingly, U.S. stocks opened higher Wednesday, recovering from earlier losses. Some analysts are calling it a “dead cat bounce,” while others hope it’s a sign cooler heads may be prevailing inside the administration.
All eyes are now on Treasury Secretary Scott Bessent, who is reportedly preparing to meet with a Japanese delegation soon. Could this be the beginning of some early trade breakthroughs?
Nobody knows yet. But in this wild economic moment, even the faintest signal of compromise could send the markets swinging the other way.
