China-EU Trade War Intensifies, President Donald Trump Tells Americans "BE COOL!"

China-EU Trade War Intensifies, President Donald Trump Tells Americans "BE COOL!"

Washington — President Donald Trump on Wednesday urged Americans to "BE COOL!" as his administration took a stoic approach to the intensifying trade war, with China and the European Union imposing retaliatory tariffs against his high tariffs.

"BE COOL! Everything will work out fine. USA will be bigger and better than ever!" Trump posted on his social media platform, Truth Social. He later added, "It’s a great time to shop!!!"

Following Trump's comments, China imposed an 84% tariff on U.S. exports in response to the 104% tariff it had placed on Chinese goods. The European Union then announced it would impose a 25% tariff on multiple U.S. products as a countermeasure against Trump’s 25% tariff. This retaliatory move has sparked concerns among business leaders and economists about the potential for an economic downturn. However, Treasury Secretary Scott Bessen downplayed the impact of China's retaliatory tariffs, stating that the trade war between the U.S. and Beijing is a "bad situation" for both sides.

“They are a surplus country. Their exports to the U.S. are five times greater than our exports to China, so they can raise their tariffs, but so what?” Bessen said in an interview on Fox News Wednesday morning. Bessen described it as "unfortunate" that China doesn’t want to negotiate trade policy with the U.S., calling them "the worst offenders in the international trade system." Later, at the American Bankers Association, Bessen suggested that the U.S. and its allies might eventually discuss a trade agreement with China, but only after finalizing tariff deals with Japan, South Korea, and other countries.

"In the end, we’ll probably be able to make deals with our allies, who are good military allies but not necessarily economic allies — then we can negotiate with China as a group," Bessen said. China is still not among the 70 countries that are interested in a trade agreement with the U.S. after Trump's general tariffs came into effect on Wednesday.

The Trump administration has already begun talks with South Korea and Japan. Bessen also mentioned that the administration is meeting with a delegation from Vietnam.

Bessen warned that any country aligning with China against the U.S. in trade would be making a serious mistake. "It would be like cutting your own throat," he said. Trump has said that high tariffs — aimed at revitalizing decades of globalization — are crucial to rejuvenating the struggling U.S. manufacturing sector and establishing equity with other countries imposing tariffs on U.S. exports. Speaking at a bankers' group, Bessen, who made his fortune as a billionaire hedge fund manager, defended Trump’s economic policies, saying, "It’s now Main Street’s turn to see economic growth."