Daijiworld Media Network - Washington

Washington, Apr 5: US President Donald Trump on Friday accused China of ‘panicking’ after Beijing hit back with a matching 34 per cent tariff on American imports, escalating an already heated trade war.

The retaliation sent shockwaves through financial markets. All major US indices fell over 3 per cent in morning trading, while the tech-heavy Nasdaq Composite dropped 4 per cent. According to The Wall Street Journal, it was on track to enter a bear market marking a 20 per cent fall from recent highs.

Trump had earlier announced a sweeping 34 per cent tariff on Chinese goods and imposed fresh levies on all trading partners. A base 10 per cent rate was slapped across the board, while nations like India (26%), Japan, the EU and China faced higher duties.

“China played it wrong, they panicked – the one thing they cannot afford to do!” Trump posted on Truth Social, his social media platform.

His statement hinted that he expected China to negotiate rather than retaliate.

When asked if talks were still possible, Trump replied, “Well, it depends… If somebody offers us something phenomenal, that’s good.”

He added, “Tariffs give us great power to negotiate. I’ve used them effectively during my first term. Now it’s a global situation — and it’s exciting to see.”

However, his optimism appeared at odds with top officials in his administration.

“There’s no chance President Trump will back off,” said Commerce Secretary Howard Lutnick, a key architect of the tariff plan. “The world should stop exploiting the United States.”

Echoing that view, senior trade adviser Peter Navarro stated the tariffs were “not a negotiation.”