Donald Trump responded to the growing market instability. He admitted that economic changes bring “transition problems” and “difficulty.” His remarks came as U.S. and Asian markets continued to slide due to his tough tariff policies.
White House Raises Tariffs on China
The White House recently increased tariffs on certain Chinese goods to 145%. Earlier reports mentioned a 125% tariff. However, officials clarified the new figure includes a 20% existing levy on fentanyl-related products.
Trump Still Open to Negotiation
Despite rising tensions, Trump expressed hope for a resolution with Beijing. He said, “I think we’ll end up working something out that’s very good for both countries.” His comments suggested that he still believes in striking a mutually beneficial deal.
U.S. Markets Close Deep in Red
After a positive start, U.S. markets fell sharply by the end of the day. The S&P 500 dropped 3.6%, the Dow Jones lost 2.5%, and the Nasdaq fell 4.31%. Tech giants suffered major losses. Amazon and Apple both dropped 7%, while Warner Bros Discovery plunged 14%.
Asian Markets Follow U.S. Trend
Markets in Asia opened weakly and posted significant losses. Japan’s Nikkei fell 4.61%, ending at 33,014.84. South Korea’s KOSPI dropped 1.5% to 2,408.38. Australia’s ASX 200 slipped 1.85%. In contrast, the Shanghai Composite and Hong Kong’s Hang Seng Index remained mostly flat.
As markets continue to react, Trump stood by his tariff move. However, his signal toward a possible agreement with China offered a hint of relief. Investors now await further clarity on future trade developments.
