China raised tariffs on US goods from 84% to 125%, marking a significant escalation in the trade conflict between the world’s two largest economies.
The Chinese foreign ministry said the United States must “stop its capricious and destructive behavior” if it wants to engage in dialogue.
“Give the bully an inch, he will take a mile,” ministry spokesperson Lin Jian stated.
In response, the White House warned that Trump would “punch back harder” if retaliated against.
“The president made it very clear when the United States is punched, he will punch back harder,” said White House Press Secretary Karoline Leavitt.
She said Trump’s goal is to ensure “fair trade practices around the globe” and to support American workers and industries.
Leavitt confirmed that the US tariff rate on Chinese imports remains at 145%.
She added that Trump hopes to reach a deal benefiting American companies that “have been ripped off for far too long.”
The press secretary also revealed that more than 75 countries have reached out to the US to negotiate trade agreements, saying “the phones have been ringing off the hook.”
According to Leavitt, over 15 trade deals are close to being finalized, with each being “country by country, tailor-made deals.”
She noted that if no agreement is reached by the end of Trump’s 90-day tariff pause, “we'll make that decision that we're taking on a different subject.”
Leavitt defended the administration’s tariff policies, asserting that they will “drive down the cost of living” and bolster US manufacturing.
“The United States cannot be dependent on countries like China if we want this country to be strong and wealthy,” she said.
On Wall Street, markets opened lower Friday amid growing concerns over the trade war’s impact on the global economy.
The Dow Jones Industrial Average fell 0.25%, the S&P 500 dropped 0.24%, and the Nasdaq Composite declined by 0.18%.
Meanwhile, UK markets closed slightly higher, with the FTSE 100 ending the day up 0.6%.
BlackRock CEO Larry Fink warned that the US economy may already be in recession, saying, “I think we're very close, if not in, a recession now.”
He criticized the administration’s trade strategy, calling it a self-inflicted wound: “This is something that we’ve created.”
New York Federal Reserve President John Williams echoed concerns, warning that tariffs will likely accelerate inflation and slow GDP growth to below 1%.
Consumer sentiment in the US also plummeted, with the University of Michigan’s index falling from 57.0 in March to 50.8 in April.
Survey Director Joanne Hsu said the decline was “pervasive and unanimous,” citing growing concerns over inflation, income, and labor markets.
Wall Street analyst Dan Ives described the current situation as an “economic tariff Armageddon,” warning of price shocks and disruptions, particularly to the US tech supply chain.
He noted that Apple could be heavily affected, as roughly 90% of its iPhones are produced in China.
“The self-inflicted uncertainty from the China tariffs has turned the corporate capital expenditures world upside down,” Ives said.
He added that China “holds a lot of cards in this game of poker.”
The administration continues to face scrutiny, with questions raised about potential market manipulation after Trump tweeted “GREAT TIME TO BUY” shortly before announcing a pause on some tariffs.
US Senator Elizabeth Warren has called for an investigation into whether insider trading occurred, citing video that appeared to show Trump boasting about financial gains made by those close to him.
White House officials, including senior adviser Peter Navarro, defended Trump’s approach, stating the goal is “90 deals in 90 days.”
Navarro urged markets to “trust in Trump,” despite rising tensions and a volatile economic outlook.