U.S. President Donald Trump sought to calm financial markets and global investors on Friday after announcing plans to impose 100% additional tariffs on Chinese imports beginning November 1st — a move that reignited fears of a renewed U.S.–China trade war.
Posting to Truth Social late Friday, Trump wrote: “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!! – President DJT.”
The post marked a sharp shift in tone from Trump’s earlier statements this week, when he harshly criticized Beijing over its decision to enforce new export controls on rare earth minerals vital to U.S. manufacturing and defense industries. The softer message appeared aimed at easing investor anxiety before markets reopen on Monday, as traders brace for potential global economic fallout.
Following Trump’s tariff announcement, Wall Street reacted sharply. The S&P 500 dropped 2.7%, its worst single-day loss since April when trade tensions first reignited. The Dow Jones Industrial Average fell 878 points, or 1.9%, while the tech-heavy Nasdaq Composite tumbled between 3.5% and 3.6% amid fears of disrupted Chinese supply chains.
Market analysts noted the timing of Trump’s conciliatory post — released just before the close of trading on Friday — appeared designed to give investors the weekend to digest the situation before the markets reopened.
China, meanwhile, signaled it would not back down. In a statement Sunday, China’s Commerce Ministry declared: “Willful threats of high tariffs are not the right way to get along with China. China’s position on the trade war is consistent: we do not want it, but we are not afraid of it.”
Despite hinting at canceling a planned meeting with Chinese President Xi Jinping during the upcoming APEC Summit in South Korea, Trump suggested on Saturday that the meeting might still go ahead, signaling potential room for negotiation amid the renewed tensions.