United States President Donald Trump reaffirmed his support for the country’s tariff policy on Friday, claiming that the United States is “doing really well” despite escalating tensions with China. His comments came hours after Beijing raised tariffs on American imports to an unprecedented 125%.

“Very exciting for America, and the World!!! It is moving along quickly,” Trump posted on his TruthSocial account, reflecting optimism in the face of intensifying trade hostilities.

The trade standoff between the two global economic powerhouses took a dramatic turn earlier in the day as China retaliated to U.S. trade measures with a sweeping increase in duties on U.S. goods. The move has stirred fresh concerns over a prolonged economic standoff and its potential impact on global supply chains and investment confidence.

Market participants were quick to respond to the uncertainty. The Dow Jones Industrial Average dropped over 2,000 points by the close of Thursday’s trading session, underscoring the deepening investor unease. Analysts suggest that the sharp decline signals a broader fear of economic fallout if the dispute continues unchecked.

Despite the market volatility, Trump remained upbeat about the trajectory of his administration’s trade strategy, framing it as a bold and necessary correction of longstanding imbalances. He continued to tout the policy as a way to rebalance unfair practices and strengthen the U.S. economy in the long term.

As tensions climb and economic indicators flash warning signs, all eyes are on upcoming developments and potential efforts to de-escalate what is becoming a high-stakes trade war. For now, Trump appears committed to his tough stance, signaling little interest in reversing course amid mounting global concern.