'BE COOL': Trump's two-word message as massive reciprocal tariffs take effect, shake global markets

US President Donald Trump has urged Americans to remain calm Wednesday as his sweeping tariffs on imports took effect. President Trump urged Americans to chill out Wednesday as his enormous “reciprocal” tariffs took effect — including a 104% rate on China and 20% duty on the European Union.

In a social media post, Trump said people should “BE COOL.” Both China and the European Union retaliated Wednesday.

“BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!” Trump wrote on social media.


“THIS IS A GREAT TIME TO BUY!!!” he added two minutes later, referring to the significant stock market selloff since he announced his “Liberation Day” levies April 2.

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China, EU retaliate

China and the European Union announced new trade barriers on U.S. goods on Wednesday in response to steep duties imposed by Trump, escalating a global trade war that has hammered markets and raised the likelihood of recession.

China announced a tariff hike on U.S. imports to 84% from 34%, shortly after Trump's punitive 104% tariffs on Chinese imports kicked in on Wednesday, as a standoff between the world's two largest economies showed no signs of resolution.

The EU said it would impose 25% tariffs on a range of U.S. imports in a first round of countermeasures. The 27-member bloc faces U.S. tariffs of 20% on most products and higher duties on autos and steel. Countermeasures in Canada, a close U.S. ally and major trading partner, also took effect on Wednesday.

The US stock market remained shaky in another twitchy day of trading after most other markets tumbled Wednesday as President Donald Trump’s trade war keeps escalating.

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The S&P 500 was down 0.7% in midday trading after quivering at the start of trading. The index at the center of many 401(k) accounts swung from an initial loss of 0.5% to a gain of 1.4% and back down, all in less than an hour after trading opened.

Trump’s new tariffs include a 10% global baseline on most countries, with much higher rates on partners with which the US has trade deficits, including important allies. During a speech Tuesday night, Trump referred to U.S. trading partners as “trade cheaters” as he sought to justify his tariffs that are roiling global markets.

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Trump, who has pined for tariffs in public remarks for four decades, has yet to terminate any of the new “reciprocal” tariffs, which do not impact USMCA-compliant goods from Canada and Mexico.

Computer chips, copper, lumber and pharmaceuticals were exempt from the new tariffs, though Trump has publicly committed to slapping levies on each of those products in a bid to return manufacturing to the US. Trump also implemented a 25% tariff last week on foreign-made cars — which make up about half of the US market — and car parts, and previously slapped a stiff 25% tariff on steel and aluminum without exceptions, as well as a 20% tariff on China over fentanyl smuggling.