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President Donald Trump has confirmed that the United States is now in an active trade war with China, marking one of the most direct economic confrontations between the two countries in recent years. Trump made the statement after days of rising tension following his threat to impose 100% tariffs on all Chinese imports.
A reporter asked Trump if the U.S. was preparing for a trade war with China, to which he answered, “Well, we’re in one now.” He emphasized that the tariffs are America’s main tool of defense against unfair trade practices. His remarks mark the first official acknowledgment from the administration that trade hostilities with China have fully reignited.
Trump defends tariffs and says they protect America
President Donald Trump said, “If we didn’t have tariffs, we would have no defense.” He argued that the tariffs stop foreign nations like China from flooding the U.S. market with cheap goods and controlling critical industries that America depends on.
Just last week, the President posted on social media, stating that he would impose a 100% tariff on all Chinese imports. His announcement triggered fear across global markets, as Bitcoin prices dropped quickly from around $121,560 to below $103,000 within a few hours. Traders and analysts said the sudden drop shows just how sensitive the market is to signs of rising tension between the world’s two largest economies. The reaction also reminds people just how much power Trump’s words still carry.
People who support these trade policies argue that the tariffs will prompt companies to reconsider relocating production outside the United States and make trade more equitable. They also argue that the tariffs will push businesses to make goods locally, even if that means paying more in the short term, which will help the country become more self-reliant.
On the other hand, critics argue that the tariffs will increase prices for everyday goods, including electronics, clothing, and machinery. They also warn that American farmers and exporters could lose access to key markets if China responds with its own tariffs.
The markets did not crash as many people had expected following Trump’s announcements, and prices even began to stabilize after an initial shock. U.S. stock futures remained mostly steady, and Bitcoin prices increased by about 0.1% over the next few hours.
Experts say this indicates that investors no longer panic as quickly as they did before, because they have grown accustomed to Trump’s strong language regarding China. A few analysts think Trump’s approach is a deliberate strategy to put more pressure on China and gain the upper hand before trade talks between the two governments.
Bessent criticizes China’s “disappointing actions”
U.S. Treasury Secretary Scott Bessent spoke on Wednesday and criticized what he called China’s “disappointing actions” in trade and resource control. He said the Chinese government is making choices that could slow down the entire global economy and cause serious harm to China’s own industries and workers at the same time. “If some in the Chinese government want to slow down the global economy through disappointing actions and economic coercion, the Chinese economy will be hurt the most,” Bessent said in his statement.
Bessent said that China’s restrictions on exports, such as rare earth minerals, will disrupt global supply chains and make it difficult for companies everywhere to plan their production. The Treasury Secretary stated that these restrictions create fear and uncertainty, which will ultimately prompt companies to relocate their supply chains away from China. In the long run, this will reduce China’s influence and slow down its economic growth.
Bessent said that China’s approach to trade is damaging its relationships with other countries. He explained that the U.S. and its allies have been working with Beijing for many years to encourage open trade and shared progress that would benefit everyone. However, countries are beginning to see China as a threat to stability because its actions make it difficult to maintain trust. “This is China versus the world,” Bessent said firmly, adding that “we and our allies will neither be commanded nor controlled by a group of bureaucrats in Beijing.”
Bessent said that Washington is helping its allies establish new production centers and identify new sources of raw materials, thereby reducing their dependence on any single country.
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