On April 5, 2025, Guo Jiakun, the spokesperson for China’s Foreign Ministry, expressed strong criticism of the escalating trade tensions between the United States and various countries. This statement came in the wake of a significant downturn in the U.S. stock market, which saw investors lose a staggering $5 trillion. Guo labeled the ongoing tariff disputes initiated by the U.S. as “unprovoked and unjustified,” calling for a reevaluation of these aggressive trade policies.
U.S.-China Tariff War Intensifies
The trade conflict has intensified since April 2, 2025, when former President Donald Trump announced a series of reciprocal tariffs. In response, China plans to implement a 34% tariff on all imports from the U.S., effective April 10. This retaliatory measure has further escalated tensions, with Guo urging the U.S. to cease its "wrong actions" and engage in constructive dialogue with its global trading partners.
- Key Points:
- Date of Trump’s tariff announcement: April 2, 2025
- China’s retaliatory tariff: 34%
- Effective date for China’s tariffs: April 10, 2025
- Total U.S. market losses: Over $5 trillion
Wall Street Reacts to Trade Uncertainty
The ramifications of this trade war were starkly evident on April 4, 2025, when Wall Street experienced its most severe decline since the COVID-19 pandemic. The Dow Jones Industrial Average plummeted by 5.50%, closing at 38,314.86 points, a loss of more than 2,200 points. The Nasdaq Composite Index and S&P 500 also experienced significant losses, dropping 5.82% and 5.97%, respectively.
- Market Closing Figures:
- Dow Jones: 38,314.86 points (down 2,200 points)
- Nasdaq: 15,587.79 points (down over 900 points)
- S&P 500: 5,074.08 points (down over 300 points)
Calls for Constructive Dialogue
Guo Jiakun emphasized the necessity for the U.S. to engage in equal-footed consultations to mend its relationships with trading partners. He stated, “Now is the time for the U.S. to correct its course and seek resolutions through fair discussions.” His remarks were made following the dramatic downturn in the markets, showcasing a clear message from China regarding the need for diplomatic engagement.
Trump’s Investor Message Amidst Market Turmoil
Amid the market chaos, Donald Trump attempted to reassure investors, proclaiming on social media that it’s a “great time” to invest in the U.S. economy. He reassured potential investors that his policies would remain unchanged, aiming to foster confidence despite the turbulent market conditions.
As the situation develops, all eyes remain on the U.S. and China as they navigate this complex landscape of tariffs and trade relations. The stakes are high, and the outcome will likely have lasting implications for global markets and economic stability.
