BEIJING/WASHINGTON/LONDON: Beijing increased its tariffs on US imports to 125 percent on Friday, hitting back against President Donald Trump’s decision to raise duties on Chinese goods and upping the stakes in a trade war that threatens to upend global supply chains.
The retaliation intensified global economic turmoil unleashed by Trump’s tariffs. US stocks ended a volatile week higher, but the safe haven of gold hit a record high during the session and benchmark US 10-year government bond yields posted their biggest weekly increase since 2001 alongside a slump in the dollar, signaling a lack of confidence in America Inc.
One US survey of consumers showed inflation fears have mounted to their highest since 1981, while financial institutions have been forecasting an ever greater risk of recession.
Trump downplayed the market turbulence, predicting the dollar would strengthen and saying many tariffs could settle in around 10 percent once the United States cut trade deals with all the countries that want to negotiate.
“When people understand what we’re doing, I think the dollar will go way up,” he told reporters aboard Air Force One late on Friday. “The bond market’s going good. It had a little moment but I solved that problem very quickly.”
The White House has said more than 75 countries have sought negotiations and that future deals would bring certainty.
India and Japan are among the powers to have advanced toward trade talks, but generally foreign leaders have puzzled over how to respond to the biggest disruption to the world trade order in decades.
The tit-for-tat tariff increases by the US and China stand to make goods trade between the world’s two largest economies impossible, analysts say. That commerce was worth more than $650 billion in 2024.
“The president made it very clear: When the United States is punched, he will punch back harder,” White House Press Secretary Karoline Leavitt told reporters on Friday.
The dollar slid and a sell-off intensified in US Treasuries, the world’s biggest bond market, as gold climbed.
With the dollar weakening, selling of US assets was perhaps most exemplified by t
The price decline in the US 10-year Treasury note. decline drove its yield — which moves opposite to the price and is critical for determining interest rates on mortgages — to a two-month high. On the week, its yield has climbed nearly half a percentage point.
Treasury Secretary Scott Bessent is closely monitoring the bond market, Leavitt said.
A second day of data on US inflation showed price pressures were not yet building broadly across the US economy, although the Producer Price Index for March did show industrial metals prices rising due to import levies on things like steel and aluminum, in place for a month now.
“Tarifflation will be much more important for the outlook than backward-looking data,” said Bill Adams, chief economist at Comerica Bank. “If tariffs stay in place they will push inflation considerably higher in coming months.”
The University of Michigan said its Consumer Sentiment Index dropped to 50.8 this month from 57.0 in March. Economists polled by Reuters had forecast the index falling to 54.5.
In a reversal of previous surveys, the latest one also showed weakening confidence among Trump’s fellow Republicans.
Consumers’ 12-month inflation expectations soared to 6.7 percent this month, the highest since 1981, from 5.0 percent in March, according to the survey.

Trade war with China
This week, Trump announced a 90-day tariff pause on dozens of countries while ratcheting up tariffs on Chinese imports effectively to 145 percent.
China retaliated with more tariffs on Friday. China’s finance ministry called Trump’s tariffs “completely unilateral bullying and coercion.”
Beijing indicated this would be the last time it matched US tariff rises but left the door open for other types of retaliation.
“If the US truly wants to have talks, it should stop its capricious and destructive behavior,” Liu Pengyu, spokesperson for the Chinese embassy in the US, wrote on social media. “China will never bow to maximum pressure of the US“
UBS analysts in a note called China’s declaration “an acknowledgement that trade between the two countries has essentially been completely severed.”
Leavitt, in turn, delivered a warning to Beijing: “If China continues to retaliate, it’s not good for China.”
On Thursday, Trump told reporters he thought the US could make a deal with China and he respected Chinese President Xi Jinping. On Friday, Xi made his first public remarks on Trump’s tariffs, telling Spanish Prime Minister Pedro Sanchez in Beijing that China and the European Union should “jointly oppose unilateral acts of bullying.”

WASHINGTON: A group of US senators on Friday urged the government’s markets watchdog to investigate whether President Donald Trump or White House insiders broke securities laws ahead of his dramatic reversal on global tariffs.
The six Democrats — led by Massachusetts progressive Elizabeth Warren — noted in a letter to the Securities and Exchange Commission (SEC) that Trump posted on his website Truth Social early Wednesday that “THIS IS A GREAT TIME TO BUY!!!” as stock markets were tanking.
A few hours later, Trump announced a 90-day suspension of additional tariffs against dozens of countries, triggering a historic stock market rebound and the best day for the S&P 500 since the recovery from the 2008 financial crisis.
“We urge the SEC to investigate whether the tariff announcements... enriched administration insiders and friends at the expense of the American public,” senators wrote in a letter to regulators at the Securities and Exchange Commission.
The letter urged the SEC to probe whether “any insiders, including the president’s family, had prior knowledge of the tariff pause that they abused to make stock trades ahead of the president’s announcement.”
Trump signed his Truth Social post with the letters “DJT” — both his initials and the stock market abbreviation for his media company, Trump Media & Technology Group.
The company’s shares closed up 21.67 percent on Wednesday.

“Corruption and lawlessness”

The senators called on the SEC to investigate whether the president, his donors or other insiders had engaged in market manipulation, insider trading or other violations of securities laws.
SEC chairman Paul Atkins has history with Warren, the top Democrat on the Senate Banking Committee, who has accused him of having conflicts of interest over his ties to the financial services industry.
Atkins is not obliged to do what the senators ask, and four of the group followed up with a second letter to the National Association of Attorneys General asking for state-level investigations.
“Corruption and lawlessness have become a calling card of the Trump administration,” said Senate Minority Leader Chuck Schumer, one of the signatories of both letters.

The demand for action came amid concern over the growing number of avenues through which Trump and his family can monetize the power of the presidency, although no evidence of corruption had emerged.
Days before his inauguration, Trump released a “memecoin” — a digital cryptocurrency token with no inherent value — opening the door for secret donations from foreign buyers.
“Now anyone in world can essentially deposit money into bank account of President of USA with a couple clicks,” his former aide Anthony Scaramucci posted on social media after the launch.
“Every favor — geopolitical, corporate or personal — is now on sale, right out in the open.”
The White House told The Washington Post that Trump’s Truth Social post sought only to “reassure” the public and that he had a responsibility to “reassure markets and Americans about their economic security.”