Trump says 'be cool' and it's 'a great time to buy' as trade war intensifies

Published 09/04/2025, 15:24
© Reuters

Investing.com -- As stocks continue to bleed on the trade war escalation, U.S. President Donald Trump is out trying to calm nerves.

“THIS IS A GREAT TIME TO BUY!!!” Trump said on his Truth Social platform on Wednesday.

He added, “BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!”

The comments from Trump come after the tariff war with China and other trading partners entered a new phase.

At midnight, 104% tariffs on China imports to the U.S. went into effect.  China quickly retaliated and raised its tariff on the U.S. to 84%.

Reciprocal tariffs also went into effect in over 180 countries, including 46% on Vietnam, 20% on the EU, 24% on Japan, 32% on Taiwan, and a host of other countries.

In addition to China, the EU has approved its retaliation measures today, although other countries are holding off.

"The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy," the European Commission said in a statement. "The EU has stated its clear preference to find negotiated outcomes with the US, which would be balanced and mutually beneficial."  The EU tariffs will go into effect on April 15.

The biggest question for markets and trading partners is if President Trump is open to negotiations or wants to make the tariffs permanent.

In recent comments, Trump said, “Tariffs can be permanent, and we can still negotiate.”  He has constantly bragged about the billions of dollars being brought into the U.S. Treasury from the tariffs.

U.S. stocks were higher in early trading Wednesday, reversing heavy pre-market losses.  Gains could be more of a dead cat bounce or on hopes that cooler heads in the administration will prevail and some early deals can be announced. Treasury Secretary Scott Bessent is expected to be meeting with a delegation from Japan soon.

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