President Donald Trump goaded China on Friday after the United States' chief economic rival retaliated against his tariffs, and he dismissed falling stock markets over the growing global trade war, touting it as a chance to "get rich."
"China played it wrong, they panicked -- the one thing they cannot afford to do!" Trump posted on Truth Social, writing the message in his trademark all-caps.
For a second straight day, markets plunged, wiping vast sums off investment and retirement portfolios alike. US Federal Reserve Chairman Jerome Powell warned the tariffs were likely to spur "higher inflation and lower growth."
Wall Street went into free fall, following similar collapses in Asia and Europe. The Dow Jones dropped 5.5 percent and the S&P 5.97 percent.
Losses in US financial markets were estimated at more than $6 trillion since Trump unveiled his "Liberation Day" tariffs.
Trump, who unveiled his barrage of import duties against dozens of countries Wednesday, was unrepentant, posting that "my policies will never change."
"This is a great time to get rich," he wrote.
The 78-year-old Republican, who was spending a long weekend golfing at his course in Palm Beach, Florida, is banking on the theory that the might of the world's biggest economy will force foreign companies to manufacture on US soil, rather than continue to import goods.
"ONLY THE WEAK WILL FAIL!" Trump touted in one more Truth Social post Friday.
And in yet another, he insisted corporations were unfazed. "Big business is not worried about the Tariffs, because they know they are here to stay," he posted.
China, however, responded by announcing its own new 34-percent tariffs on US imports starting April 10.
Beijing said it would sue the United States at the World Trade Organization and also restrict export of rare earth elements used in high-end medical and electronics technology.
Other big US trading partners held back as they digested the unfolding international standoff and fears of a recession.
EU trade chief Maros Sefcovic said the European Union, which Trump hit with a 20-percent tariff, will act in "a calm, carefully phased, unified way" and allow time for talks.
However, he also warned the bloc "won't stand idly by."
With AFP
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