US President Donald Trump on Wednesday (local time) defended his decision to raise tariffs on China to 125 per cent, stating, “somebody had to do it.”
The President, during his meeting with Roger Penske’s NASCAR, INDY, and IMSA Champions at the White House, emphasised that no other US leader would have taken such a bold stance, highlighting that the tariff hike was necessary as the previous trade imbalance with China was “unsustainable”.
He pointed out that in the previous year, China made USD 1 trillion off trade with the US and that he had “reversed it” through his aggressive tariff strategy.“Well, I thought that people were jumping a little bit out of line. No other President would have done what I did… Somebody had to do it. It had to stop because it’s not sustainable. Last year, China made USD 1 trillion off trade with the United States… Now I’ve reversed it,” Trump said.
Speaking on the 90-day pause on reciprocal tariffs to over 75 countries, President Trump remarked, “I did a 90-day pause for the people who didn’t retaliate because I told them if they retaliate, we’re going to double it. And that’s what I did with China because they did retaliate.”
He expressed confidence that the trade situation would “work out amazingly” for the US in the long term, adding that by the end of the year, or possibly sooner, the country would have an agreement that “nobody would have dreamt possible”.
The President also addressed the trade situation with the European Union (EU), claiming that the EU had not been fair to the United States.
“A deal is going to be made with everyone and they will be fair deals… They weren’t fair to the United States. They were sucking us dry and you can’t do that… People took advantage of our country and ripped us off for decades,” Trump said, signalling his intent to negotiate better terms with the EU.
In a lighter moment during his remarks, President Trump also praised the racing champions for their “courage” during a celebration of championship racing owner Roger Penske’s career and life. He quipped about the high speeds of the NASCAR machines, saying, “These are great champions, and this is a great sport.”Trump also recalled an experience of riding around the track in “The Beast”, the US President’s armoured limousine, ahead of the Daytona 500, describing the crowd’s “going crazy” from inside the vehicle.
“I wouldn’t ride in that thing if you paid me,” he further joked, referring to the IndyCar machine.
Earlier, President Trump announced an immediate increase in tariffs on China to 125 per cent and simultaneously announced that for 75 countries that have called Representatives of the United States for trade talks, he has authorised a 90-day “pause” and a substantially lower reciprocal tariff.
This came after China, in a retaliatory move, announced that it would increase its tariff on US goods from 34 per cent to 84 per cent starting April 10, as reported by Al Jazeera.
The decision comes after the US increased tariffs on China to a whopping 104 per cent, following President Trump’s threat of “additional 50 per cent tariffs” on Beijing starting Wednesday.
Trump had announced an additional 50 per cent tariff on China after Beijing announced a 34 per cent tariff on the United States in a tit-for-tat response.