By Sam Spade, Political Correspondent
Published: April 09, 2025
On Wednesday, President Trump encouraged Americans to remain calm as his substantial “reciprocal” tariffs went into effect, imposing a 104% rate on China and a 20% duty on the European Union.
“Stay relaxed! Everything will turn out fine. The USA will be greater and more prosperous than ever!” Trump posted on social media.
“NOW IS AN EXCELLENT TIME TO INVEST!!!” he wrote two minutes later, alluding to the sharp stock market decline since he unveiled his “Liberation Day” tariffs on April 2.
Stock performance was varied Wednesday morning, following a drop of over 12% in the S&P 500 and Nasdaq, and a more than 10% decline in the Dow Jones Industrial Average over the four trading days since the announcement.
Trump has expressed willingness to negotiate trade agreements to reduce tariffs. Israeli Prime Minister Benjamin Netanyahu, facing a 17% rate, visited the White House on Monday, promising to eliminate Israel’s trade surplus with the US and remove all tariffs and non-tariff barriers.
The leaders of Japan, subject to a 24% tariff, and South Korea, facing a 25% rate, have also spoken with Trump, pledging to dismantle barriers to US goods after Trump criticized their restrictive policies on American cars and farm products.
Treasury Secretary Scott Bessent reported Wednesday morning that approximately 70 countries have initiated trade discussions, noting that China stands out for responding with steep new tariffs of its own.