Trump on tariffs: This is an economic revolution and we will win, we were a stupid and helpless victim of the flogging...

The large increase in tariffs imposed by United States President Donald Trump has escalated the trade war and led to a global market downturn.

The New York Stock Exchange's S&P 500 index fell 5,5 percent on Friday, the Dow Jones Industrial Average fell 5,8 percent, and the Nasdaq Composite Index fell XNUMX percent.

China announced on Friday that it would impose a 34 percent tariff on all imports from the United States next week, part of a series of retaliatory measures against Trump's new tariffs.

Trump has stepped up his commitment to tariffs, claiming his new levies will bring trillions of dollars of investment to the US, and criticizing retaliatory measures from other countries.

The basic 00 percent tariff announced by Trump this week went into effect at 01:04 a.m. Eastern Time (01:XNUMX GMT) on Saturday, bringing thousands of customs agents to U.S. border crossings.

Higher tariffs on other countries targeted by Trump are set to take effect on Wednesday: up to 50 percent for Lesotho, 49 percent for Cambodia and 47 percent for Madagascar.

In a social media post in all caps as he likes to write, Trump wrote today: "THIS IS AN ECONOMIC REVOLUTION AND WE WILL WIN!".

The public reaction was not as confident, as stock markets fell since the announcement of the new tariffs.

Chinese Foreign Ministry spokesman Guo Jiakun posted a photo on Facebook showing the Dow Jones, S&P 500 and Nasdaq all falling more than five percent on Friday, with the comment "The market has spoken."

"The trade and tariff war launched by the US against the world is unprovoked and unjustified," Guo wrote.

"Now is the time for the US to stop doing the wrong thing and resolve differences with trading partners through equal consultations," he added.

China today leveled further criticism at the US tariffs, saying they "seriously infringed on the legitimate rights and interests of all countries, seriously violated World Trade Organization rules, seriously damaged the rules-based multilateral trading system, and seriously affected the stability of the global economic order."

The US "uses tariffs as a weapon to exert extreme pressure and at the request of private interests. This is a typical act of unilateralism, protectionism and economic bullying," said a statement attributed to the Chinese government, reported by the official Xinhua news agency.

"Pressure and threats are not the right way to deal with China. China has taken and will continue to take firm measures to protect its sovereignty, security and development interests," the statement said.

It said China would continue "high-level opening-up" rather than closing its economy with even higher tariffs.

"Economic globalization is an inevitable path for the development of human society," the statement said, adding that "the world needs justice, not tyranny!"

New US tariffs on countries around the world, including 34 percent on China, have led to it vowing to match the rate imposed by Trump.

The British car industry is expected to be hit hard by the new tariffs as British carmakers are already struggling with falling demand at home and the need to retool their factories to switch to electric vehicles.

Trump was at his golf course in Jupiter, Florida, today for the first time since the start of his second term. He was spotted wearing his red MAGA hat and white polo shirt as he read a tabloid article about China's response to US tariffs.

"They and many other countries have treated us unsustainably badly," Trump said on his social media account, "Truth Social." "We were the stupid and helpless victims of the whipping, but not anymore," he added.

Italian Economy Minister Giancarlo Giordetti warned that imposing retaliatory tariffs on the US would be harmful to both Italy and Europe.

At a business forum in Cernobbio, near Milan, Giordetti said today that Italy is working on "de-escalation" with the US after Trump's announcement of a general 20 percent tariff on European Union countries.

"We should avoid launching a counter-tariff policy that could be harmful to everyone, especially us," the Italian minister said.

"Our message is that we should avoid pressing the panic button... We are following a pragmatic and rational approach," he said.

Đorđeti proposed that the EU allow member states to relax fiscal rules to increase spending.

Italy has very limited room to do so, as the government predicts its huge debt will rise to almost 2026 percent of GDP by 138.

Taiwan says it will provide a $2,65 billion fund to help industries most affected by US tariffs.

Taiwan has a trade surplus with the United States, but much of it comes from Taiwanese industries trying to meet American demand for information technology products. Officials say Taiwan plans to negotiate with the United States over the new 32 percent tariff imposed on the country and try to reach a better deal.

Prime Minister Cho Young-tae said on Friday that electronics and information technology, steel and metal, machinery, auto parts, construction materials and home appliances would feel "significant impacts" from the US tariffs, while agricultural exports and fisheries would also be affected.