‘They panicked’: Trump claims China is losing trade war as tit-for-tat tariffs escalate

United States President Donald Trump escalated his rhetoric on Saturday in response to China‘s latest retaliatory move in the deepening trade war between the two global superpowers. Speaking on Truth Social, Trump claimed that China had been impacted far more severely than the U.S. by the ongoing trade dispute, even as Beijing announced a sweeping 34% tariff on all American imports. While attempting to project confidence, Trump simultaneously acknowledged the gravity of the economic confrontation, stating, “Hang tough, it won’t be easy, but the end result will be historic.”

The comments followed China’s April 4 announcement that starting April 10, it would impose steep tariffs across a wide swathe of American goods. The Chinese State Council Tariff Commission released a strongly worded statement, accusing Washington of engaging in what it termed “typical unilateral bullying practices.” In return, the Biden administration, through Trump’s messaging platform of choice, downplayed the retaliatory move, framing it as a miscalculation on China’s part. Trump insisted that the trade imbalance had persisted for too long and declared, “China has been hit much harder than the USA, not even close.”

What triggered China’s 34% tariff on US goods?

Beijing’s new tariff regime is a direct response to Washington’s expanded trade measures targeting Chinese imports. Over the past few months, the United States has significantly increased tariffs on goods ranging from electronics to industrial components, citing long-standing concerns over intellectual property violations, trade imbalances, and unfair competitive practices. Trump’s decision to widen the scope of these tariffs reignited tensions that had been simmering since the first wave of duties under his presidency in 2018.

According to China’s State Council, the U.S.’s recent actions were inconsistent with World Trade Organization guidelines and constituted a direct threat to the principles of multilateral trade. Chinese officials emphasized that the latest counter-tariff was calibrated not only to retaliate but also to protect national economic interests. They accused Washington of weaponizing trade tools to achieve geopolitical ends and warned that the United States was misjudging both China’s resolve and economic resilience.

Why did Trump say the US has been a “whipping post” in global trade?

The language Trump used in his Truth Social post evokes the themes that have underpinned his protectionist trade policy since his first term. Describing the United States as the “dumb and helpless whipping post,” he framed the current trade war as part of a broader effort to reverse decades of what he sees as American economic decline due to outsourcing, job migration, and uneven trade treaties.

By asserting that the U.S. has attracted more than “five trillion dollars of investment, and rising fast,” Trump sought to bolster confidence among his support base and financial markets, though the verifiability of such a claim remains unclear. Nonetheless, the message was designed to position the tariffs not as a short-term burden but as a necessary price for long-term economic revival. Trump added that the country was in the midst of an “economic revolution” and that the U.S. would ultimately “win” the trade war.

What’s the historical context behind the US-China trade war?

The U.S.-China trade war began in earnest in 2018 during Trump’s first term, when the U.S. imposed tariffs on $34 billion worth of Chinese goods, alleging theft of American technology and unfair business practices. China responded in kind, triggering a series of tit-for-tat measures. By 2019, the dispute had escalated into one of the largest trade confrontations in modern history, affecting over $700 billion in bilateral trade.

The Phase One trade agreement signed in January 2020 brought temporary relief, with China committing to purchase additional U.S. goods, including agricultural and manufactured products. However, many of the underlying issues—including state subsidies, forced technology transfers, and access to Chinese markets—remained unresolved. The recent reintroduction of broader tariffs under Trump signals a return to that earlier aggressive stance, now amplified by a more volatile global economic climate.

How are global markets and industries reacting to the renewed trade conflict?

The announcement of China’s 34% retaliatory tariffs and Trump’s hardline stance have already rippled through global markets. On Friday, major U.S. indices posted sharp declines, with the Dow Jones, Nasdaq, and S&P 500 each shedding more than 5% amid fears of prolonged trade disruptions. Market analysts noted that investor sentiment was rattled by the prospect of a tariff spiral that could weigh on corporate earnings and global supply chains.

Industries with heavy exposure to China, such as automotive manufacturing, consumer electronics, and semiconductors, are among the most vulnerable. Jaguar Land Rover, for example, has temporarily paused shipments to the U.S., citing unpredictability in customs procedures and pricing due to the new tariffs. The automotive sector, already under pressure from rising raw material costs and shifting consumer demand, could face further headwinds if trade hostilities continue.

Technology companies are also on alert, particularly those dependent on rare earth materials, where China dominates global production. As part of its broader economic response, Beijing is reportedly considering export restrictions on critical minerals used in smartphones, defense systems, and renewable energy infrastructure. Such a move would target the Achilles’ heel of U.S. supply chains and reinforce China’s leverage in the conflict.

What are the geopolitical stakes of this renewed trade war?

Beyond economics, the latest escalation in the trade war reflects a broader deterioration in U.S.-China relations, which have been strained by issues including Taiwan, military presence in the South China Sea, and global tech supremacy. The current tariff conflict is intertwined with a larger battle for influence, especially in emerging technologies such as artificial intelligence, clean energy, and semiconductors.

Trump’s rhetoric suggests that his administration sees trade policy not merely as an economic tool but also as a mechanism of geopolitical pressure. Analysts note that this approach seeks to limit China’s ascent as a global technological power, particularly as Beijing ramps up investments in advanced chipmaking and green technology.

From China’s perspective, retaliatory tariffs serve both domestic and international goals. Internally, they project strength to Chinese businesses and citizens, reinforcing the narrative that the country will not bow to Western pressure. Internationally, they signal that China is willing to challenge U.S. dominance in global trade, even if it entails short-term pain.

What lies ahead as both sides brace for economic impact?

While both countries insist they are prepared for the fallout, the reality is that sustained tariffs are likely to be damaging on both ends. U.S. consumers could face higher prices on everyday goods ranging from electronics to textiles, especially if the tariff list expands. American exporters, particularly in agriculture and manufacturing, could see reduced access to the Chinese market just as they attempt to recover from pandemic-era supply chain shocks.

In the near term, Trump’s comments are likely to galvanize political support among constituencies that favour strong trade enforcement. However, without a clear path toward negotiation or de-escalation, the possibility of deeper economic fragmentation looms. International institutions such as the World Trade Organization may struggle to mediate such a high-stakes bilateral confrontation, especially given recent U.S. skepticism about multilateral forums.

Trump’s call for Americans to “hang tough” reflects his broader belief in economic nationalism, a cornerstone of his political platform. But the volatility in financial markets and the swift response from Beijing indicate that the road ahead may be far from predictable. With global supply chains already strained and geopolitical tensions running high, the renewed U.S.-China tariff war may mark a new chapter in the struggle for global economic dominance—one that could reshape the contours of international trade for years to come.