'You've played it wrong!': Trump hits back at China's tariffs as global stock markets plummet for second day
by Henry Moore · LBCBy Henry Moore
Donald Trump claims China has “played it wrong” after the country fired back at US tariffs with levies of its own.
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Beijing hit back at the United States on Friday, responding to Trump’s 34% levies with its own tariffs of the same percentage.
It comes as the US and UK stock markets plummeted sharply for the second day in a row, with the S&P 500 falling 3.2% as trading began, while the FTSE 100 suffered its worst day in five years, closing down 4.9%.
This follows yesterday’s massive decline, which marked the worst day on Wall Street since the COVID-19 pandemic five years ago.
Apple, one of the largest companies on the US Stock Exchange, fell by nearly 4%, while Tesla, owned by Trump ally Elon Musk, plunged 3%.
Stock markets in the UK, France, Germany, Japan, South Korea and Australia also fell for a second day, with the Nikkei 225 nearly at its lowest level in eight months.
London's FTSE 100 index of companies declined by a further 4.9% on Friday, its worst day since 2020.
The index slipped by 0.53%, or around 45 points, to 8,429.98 points immediately after the start of trading.
These massive declines come as the global market responds to Trump’s decision to slap trade tariffs on nearly every country in the world, including the UK.
Trump announced imports from the UK would be hit with 10% tariffs on Wednesday, the lowest rate possible - although this was still considered damaging by politicians and businesses.
Many countries and trade blocs, including China and the EU, were hit with much higher import taxes.
This morning, China hit back at Trump, issuing 34% levies of its own - the “wrong move” according to the US president.
Taking to TruthSocoal, Trump said: “CHINA PLAYED IT WRONG, THEY PANICKED - THE ONE THING THEY CANNOT AFFORD TO DO!”
Trump remained bullish as global markets crashed, adding: “IT’S ALREADY WORKING. HANG TOUGH, WE CAN’T LOSE!!!”
LBC callers react to Trump's global trade war
He also claimed the UK is happy with the tariffs he imposed on Wednesday's 'Liberation Day'.
The British government said on Thursday that it was drawing up a list of goods that would be subject to retaliatory tariffs.
The US president also said he would be open to negotiations with other countries on their tariffs if they can "offer something phenomenal".
Trump said he would think about doing a deal with China in which Beijing approved the sale of TikTok and received lower tariffs in return.
The president added his plans will bolster production in the US and support home-grown goods, but economists have said the short-term impact will be higher prices and slower growth across the economy.
But the tariff plans sent shockwaves through global markets on Thursday, most notably in the US.
The Dow Jones index dropped 3.89% - its biggest fall since 2020 - when Covid shocked the markets. The S&P 500 lost 4.85% and the Nasdaq Composite dropped 5.99%.
Nevertheless, Mr Trump told reporters that he thought the day was "going very well" after his bombshell tariff announcement, which included 10% on the UK - and much higher import taxes on others.
Andrew Marr's panel of experts dissect Trump's tariffs
“The markets are going to boom... the country is going to boom," the US president said.
He added that other counties “have taken advantage of us for many, many years.”
The announcement also caused political turmoil as other countries scrambled to work out how they would respond, amid fears of an escalating trade war.
Speaking on Thursday, Keir Starmer warned against "jumping straight into a trade war" in response to Donald Trump's trade tariffs but insisted "nothing is off the table" to protect Britain's national interest.
Putting the White House on notice, Downing Street launched a four-week “request for input” from businesses on hitting the US with retaliatory tariffs.
Business Secretary Jonathan Reynolds told MPs: "To enable the UK to have every option open to us in future, I am today launching a request for input on the implications for British businesses of possible retaliatory action. This is a formal step necessary for us to keep all options on the table.
"We will seek the views of UK stakeholders over four weeks until 1 May 2025 on products that could potentially be included in any UK tariff response. This exercise will also give businesses the chance to have their say and influence the design of any possible UK action."