Donald Trump says stock market fall is necessary medicine amid US-China trade war

Trump defends new tariffs on Chinese imports as global markets react to renewed tensions.

U.S. President Donald Trump speaks to reporters aboard Air Force One en route to Joint Base Andrews on April 6, 2025. Photo by Mandel Ngan/AFP

By Anna Fadiah and Hayu Andini

US President Donald Trump says the stock market fall is necessary medicine amid the US-China trade war. Speaking to reporters shortly after his administration unveiled a fresh round of import tariffs, Trump stood by the economic shockwaves his decision created, calling them a difficult but essential step to protect America’s long-term interests.

"I don't want anyone to go down," Trump said at a press conference late Sunday. "But sometimes you have to take medicine to fix something."

That "medicine" came in the form of aggressive tariffs that immediately triggered negative reactions in global financial markets. Asian stock indexes were the first to react, opening lower on Monday as investors digested the latest escalation in trade tensions between the world’s two largest economies.

Trump's comments followed his announcement of “reciprocal” tariffs aimed at leveling the playing field for American businesses. Under the new rules, the US will impose a base minimum tariff of 10 percent on all imports. However, each country’s specific rate will be adjusted depending on the tariffs they charge US companies exporting goods into their markets.

According to US Treasury Secretary Scott Bessent, the total tariffs now placed on Chinese goods amount to a staggering 54 percent. Bessent stated that this figure includes previous measures and that the new tariffs reflect Trump's determination to push back against what he sees as years of unfair trade practices by Beijing.

Markets reel as China hits back

It didn’t take long for China to respond. Within hours of the US announcement, China’s State Council fired back with its own round of tariffs, slapping a 34 percent duty on all American goods. The retaliatory measure took effect on April 10 and sent another jolt through international markets.

Asian stocks took the first hit, with key indexes in Tokyo, Shanghai, and Hong Kong plunging during early trading hours on Monday. Investors, already nervous over existing geopolitical tensions, scrambled to assess the implications of the latest standoff.

The move has also reignited concern among global economists who fear that prolonged economic hostilities between Washington and Beijing could tip major economies into recession. The renewed uncertainty has weighed heavily on investor confidence, with some financial analysts warning that further declines in stock prices may follow.

China denounces US policy, warns of consequences

Chinese Foreign Minister Wang Yi spoke out firmly against the US measures. In an interview with Russian news agency RIA Novosti, Wang called the tariff hike "groundless" and warned that it would harm global markets and America's reputation on the world stage.

"Imposing tariffs will not help the US solve its existing problems," Wang said. "Instead, it will cause serious damage not only to the global market and trade order, but also to the reputation of the United States itself."

Wang also issued a stern warning to Washington, stating that if the US continues to apply economic pressure, China will respond “in the most resolute manner.” That message, while not surprising, raised concerns among international observers who fear a spiral of retaliatory measures that could destabilize the fragile post-pandemic recovery.

Trump stands firm: ‘We have to do this’

Despite the backlash, Trump remained defiant. He reiterated that his focus was on protecting American workers and industries, even if that meant short-term discomfort for the markets.

"We’ve been taken advantage of for decades," Trump said. "This is about fairness. This is about making sure our companies can compete. It’s not about politics—it’s about restoring balance."

When asked whether he was worried about the long-term impact of the stock market drop, Trump replied, "Sometimes when you’re sick, you have to take medicine. It might not taste good, but it works."

The President’s rhetoric mirrors the economic nationalism that has become a hallmark of his trade policy. Since taking office, Trump has repeatedly accused foreign governments—especially China—of manipulating trade in their favor and harming US manufacturing and exports.

Business community reacts cautiously

Reactions from the American business community have been mixed. While some manufacturers praised the administration’s hardline stance, others warned that escalating trade tensions could lead to supply chain disruptions and higher consumer prices.

The US Chamber of Commerce released a statement urging both countries to return to negotiations. “Tariffs are a blunt instrument,” the statement read. “While we agree that trade must be fair, we encourage the administration to pursue dialogue rather than escalation.”

Retail groups have also expressed concern. Many American companies rely on Chinese-made components and fear that higher tariffs will force them to either absorb additional costs or pass them on to consumers.

The global fallout continues

As financial markets continue to adjust, attention is now turning to how other nations will respond. The European Union has so far remained neutral but is watching the developments closely. If the situation worsens, more countries may be pulled into the dispute, either as mediators or retaliatory participants.

Meanwhile, the International Monetary Fund (IMF) has warned that trade wars between major economies could shave off up to 0.5 percent of global GDP growth if left unchecked. In a statement released Monday, the IMF urged all sides to resolve their disputes through multilateral frameworks.

A pivotal moment for global trade

This confrontation marks a new phase in the already tense relationship between Washington and Beijing. Both sides appear unwilling to back down, and the consequences could be far-reaching—not only for the US and China but for the global economy as a whole.

For President Trump, however, the path is clear. He insists the current discomfort is a necessary part of fixing what he views as a deeply broken system. His message to Americans—and to the world—is that this is a storm worth weathering.

“We’re going to come out of this stronger,” Trump concluded. “But we can’t keep doing things the same way. Change is tough, but it’s what America needs right now.”

As Donald Trump says the stock market fall is necessary medicine amid the US-China trade war, the world waits to see if that medicine will heal or harm. For now, markets remain volatile, tempers are high, and the global trade system stands at a critical crossroads.