Panicked" China is taunted by Trump as tariff retaliation escalates. President Donald Trump taunted China on Friday after the nation retaliated against his tariffs, calling the country "panicked" and claiming that they had made a strategic error.  He suggested that the situation presented a lucrative opportunity to "get rich" and dismissed concerns regarding the stock market's response to the growing trade conflict. "China played it wrong, and they got scared, which is the only thing they can afford to do!" On Truth Social, Trump wrote in his trademark all-caps style to emphasize his point. Despite a second consecutive day of sharp market declines, which wiped out significant sums from investments and retirement accounts, Trump remained defiant.  Both the S&P 500 and the Dow Jones Industrial Average lost nearly 3% at the opening bell. In the meantime, Frankfurt and London stock markets lost more than 4%, and Tokyo's Nikkei finished the day 2.8% lower. Trump, who had launched a sweeping set of import duties against various countries just days earlier, was unapologetic.  He wrote, "My policies will never change," and then continued, "This is a great time to get rich, richer than ever before." While enjoying a long weekend of golf in Palm Beach, Florida, the 78-year-old president continued to press his economic strategy, which relies on the strength of the U.S. economy to compel foreign companies to move manufacturing to American soil instead of relying on imports.

 However, China swiftly responded by announcing new import tariffs of 34% that would take effect on April 10. In retaliation, Beijing also stated it would take the U.S. to the World Trade Organization (WTO) and restrict the export of rare earth elements critical for advanced medical and electronics technology.

 As other key U.S. trading partners watched the escalating standoff, the European Union's trade chief, Maros Sefcovic, spoke with U.S. officials, indicating that the EU would adopt a "calm, carefully phased, unified approach" while leaving room for talks.  However, he warned that the EU would not remain passive if a fair deal was not reached.  Economy Minister Eric Lombard urged French companies to act with "patriotism" in light of President Emmanuel Macron's concerns about investing in the United States, while France and Germany suggested that the EU could respond by imposing taxes on U.S. tech companies. Lombard emphasized that the EU's response could include other measures, such as data exchange or taxes, in addition to matching U.S. tariffs. "The response can be very strong, but we should not retaliate with the same weapons, as doing so could have a negative effect in Europe," he told French news network BFMTV.

 After Trump imposed a 24% tariff on Japanese-made goods, Prime Minister Shigeru Ishiba urged a "calm-headed" approach in Japan. The escalating trade war also saw new tariffs on foreign-made cars, including a 25 percent levy on all vehicles not made in the U.S.  Canada quickly mirrored this with similar tariffs on U.S. imports.  In response, car manufacturer Stellantis paused production at some Canadian and Mexican plants, while Nissan announced it would adjust its production plans in the U.S.  Volvo Cars, owned by China’s Geely, stated it would ramp up U.S. production, likely adding another model to its output.

 Despite opposition from around the world and some concern within his own party regarding potential price increases, U.S. Maintaining that the administration's approach would ultimately benefit the nation in the long run, Commerce Secretary Howard Lutnick advised patience.