Trump warns tariffs may bring transition cost.
The White House has clarified that Chinese imports will face a total tariff rate of 145%, correcting earlier reports that cited a 125% rate. This updated figure includes other previously announced tariffs that were not initially factored into the calculation. The clarification aims to provide transparency and prevent confusion over the administration’s trade policy. The increased tariff rate reflects the government’s tougher stance on Chinese trade practices, and officials emphasize that the higher rate will apply across relevant imported goods.
Trump Warns of ‘Transition Cost’ as Wall Street Slips Amid Escalating China Trade War
U.S. President Donald Trump on Thursday, April 10, 2025, issued a fresh warning about the potential “transition cost” associated with his administration’s aggressive tariff policies, particularly in light of the ongoing trade war with China. The remark came as Wall Street once again suffered losses, with investors growing increasingly anxious over the broader economic impact of rising tariffs and geopolitical tensions.
Speaking to reporters at the White House, Trump defended his strategy to impose steep tariffs on Chinese imports, insisting that it was a necessary step to correct longstanding trade imbalances. However, he acknowledged that the shift toward what he calls “fair trade” would not be without short-term challenges. “But in the long run, this will make America stronger and more competitive.”
Trump’s comments followed a turbulent day on Wall Street, where major indices took a hit. The Dow Jones Industrial Average fell over 400 points, while the S&P 500 and Nasdaq also recorded losses. Market analysts cited investor concerns over the economic toll of prolonged trade tensions and uncertainty surrounding future policy moves.
The administration recently announced a hike in tariffs on a broad range of Chinese goods, raising the effective rate to 145% after including previously announced levies. The move is part of a broader push to pressure China into making structural changes to its trade practices, including issues related to intellectual property theft, state subsidies, and forced technology transfers.
While the White House insists that the long-term benefits of the tariffs will outweigh the short-term economic pain, critics argue that American consumers and businesses will bear the brunt of rising costs. Economists warn that continued escalation could lead to a slowdown in growth and higher inflation.
As trade negotiations between the U.S. and China show little progress, global markets remain on edge. Analysts say that without a clear resolution, volatility will likely continue, with investors closely watching every move from Washington and Beijing in the weeks ahead.