‘They Panicked, Played It Wrong’: Trump Reacts Sharply to China’s 34% Tariff on US Imports

The ongoing trade war between the United States and China reached a new high on Friday as Beijing announced steep retaliatory measures against American imports. China’s finance minister declared a 34% tariff on all U.S. goods, along with fresh restrictions on critical mineral exports—moves that sent shockwaves through global markets.

President Donald Trump responded aggressively, taking to Truth Social in all caps to declare:
“CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO!”

His statement came just hours after reports confirmed China’s latest round of tariffs, which are set to take effect on April 10, a day after Washington’s new tariffs kick in.

Tit-for-Tat Tariffs Push Trade War to New Heights

The escalation stems from Trump’s decision earlier this week to impose a 34% tariff on Chinese imports, bringing total duties on Chinese goods to a massive 54%. These new tariffs come on top of the existing 20% duties, further intensifying economic tensions between the world’s two largest economies.

Beijing’s response was swift. In addition to matching Washington’s tariff hike, China also announced immediate restrictions on rare-earth mineral exports, a crucial blow given its dominance in this sector. These materials are vital for high-tech industries, including electric vehicles and defense technology.

Markets in Freefall as Investors React to Trade Tensions

The escalating trade war sent financial markets tumbling for the second consecutive day. U.S. stock indices indicated at least a 3% decline at market open, extending Thursday’s dramatic sell-off—the worst day for U.S. stocks since 2020.

With investors seeking safer assets, gold and U.S. treasury bonds saw an uptick, while industries reliant on Chinese materials—such as technology and automobile manufacturing—took a heavy hit.

China’s Economic Leverage: Rare Earths and U.S. Exports

According to the U.S. Trade Representative’s office, the United States exported nearly $144 billion in goods to China in 2024, with oilseeds and grains making up the largest share. These products are now under Beijing’s new tariff regime.

Meanwhile, China’s hold on rare-earth minerals remains a key economic weapon. The country is the world’s leading supplier of these materials, which are essential for semiconductors, batteries, and green energy production. A disruption in this supply chain could have far-reaching consequences for American industries.

What’s Next?

With neither side backing down, the trade war appears set to intensify in the coming weeks. Analysts warn that further tariff hikes, supply chain disruptions, and economic slowdowns could follow.

Whether Trump’s aggressive approach will bring China back to the negotiating table—or push the global economy toward deeper instability—remains to be seen.