U.S. President Donald Trump on Wednesday defended his decision to raise tariffs on Chinese goods to 125%, calling the move a necessary step to correct what he described as an “unsustainable” trade imbalance.
Speaking at the White House during a celebratory event for racing legend Roger Penske and his NASCAR, INDY, and IMSA championship teams, Trump asserted that no previous U.S. president had the courage to challenge China’s trade practices as he has.
“Somebody had to do it. It had to stop because it’s not sustainable,” Trump said. “Last year, China made USD 1 trillion off trade with the United States… Now I’ve reversed it.”
The President also announced a 90-day pause on reciprocal tariffs for over 75 countries that refrained from retaliatory measures. “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 explained.
Trump remained optimistic about the long-term impact of his trade strategy, suggesting a “historic” deal could be on the horizon. “It’s going to work out amazingly for us,” he said. “By the end of the year, or sooner, we’ll have an agreement no one would have dreamt possible.”
He also criticized the European Union for what he termed unfair trade practices. “They were sucking us dry,” Trump said. “People took advantage of our country and ripped us off for decades… A deal is going to be made with everyone and they will be fair deals.”
On a lighter note, the President praised the racing champions for their “courage” and joked about the speed of IndyCars. He recalled his experience at the Daytona 500, riding in “The Beast” — the Presidential limousine — while the crowd went wild. “I wouldn’t ride in that [IndyCar] thing if you paid me,” he quipped.
The latest tariff escalation comes after China retaliated by raising tariffs on U.S. goods from 34% to 84%, following the U.S.’s earlier increase to 104% and Trump’s threat of an additional 50% hike. The trade tensions have continued to escalate, though Trump’s administration remains confident in its approach.