Trump Ramps Up Tariffs, Bolsters Steel Boom—Meanwhile China Reacts
On Saturday, August 4th, President Donald Trump took to Twitter to flaunt the “victorious” outcomes of his tariff policy. He painted a picture of a reborn steel sector and Apple‑scale prosperity, while dismissing any critics as “fools.”
High‑Flying Tweets
- “Tariffs have had a tremendous positive impact on our Steel Industry,” he declared, as if the whole country were on a joyride.
- “Plants are opening all over the US, Steelworkers are working again, and big dollars are flowing into our Treasury.”
- “Tariffs will make our country much richer than it is today.”
- “Only fools would disagree.” – A classic Trump bravado moment.
China: The New Victim?
Trump claimed that “for the first time, China is doing poorly against us.” That claim came at a time when the U.S. was tugging at the reins of a massive $200 billion (about S$270 billion) Chinese goods import, raising the tariff from a planned 10 % to a possible 25 %.
China’s response? A threat to tack on an extra $60 billion in tariffs on various American products. White House economic adviser Larry Kudlow dismissed the move as a weak reaction.
Meanwhile, China’s foreign minister Wang Yi was quick to defend the country’s stance: “Fully justified and necessary,” he declared. He also took the opportunity to remind the world of China’s pivotal contributions to global growth.
The Wider Impact
Trade experts warn that the escalating U.S.–China friction could trigger a domino effect. A major trade group, the National Retail Federation, cautioned that this tariff round might bring “reckless” damage to U.S. families and workers, potentially harming more American interests than those of China.
It’s not all rosy for the American steel industry, either. While Trump celebrates job creation, beefy tariffs have rattled U.S. soybean farmers and companies reliant on expensive steel. The battle lines are being traced, and a broad ripple of uncertainty is starting to feel the heat.
In Short
Trump’s tariff foray has rightfully earned him applause in certain circles, but it has also pulled the rug under other sectors. The trade war is a tug‑of‑war where each side is tightening its grip, balancing national pride with the health of the broader economy. Whether the premium on steel will outshine the tariff cost remains to be seen.
