In a cabinet meeting on Wednesday, former President Donald Trump strongly defended his trade decisions. He told his team that the U.S. economy is still in “very good shape,” even as critics warn of growing risks. Trump said that his trade strategy is part of a broader plan to push other countries to treat the United States more fairly.

“We’re doing this to fix years of bad deals,” Trump stated. “America should not be taken advantage of.”

This defense comes at a time when global markets are feeling pressure from the aggressive trade policies. Trump insisted that the current economic plan, including high tariffs on foreign goods, is working in America’s favor.

White House Explains Steep Tariff on Chinese Goods

The White House confirmed that most Chinese imports now face a 145% tariff. This total comes from a new 125% tariff that was just announced, on top of an earlier 20% duty already in place.

Officials clarified that the new tariffs will be applied immediately to key goods from China. These include electronics, steel, and machinery — products that play a big role in both trade and U.S. industry.

White House staff said the goal is to level the playing field. They claim that for too long, China has dumped cheap products into U.S. markets while limiting access to their own.

Trump’s Trade Strategy Remains Firm

During the cabinet meeting, Trump did not shy away from the fact that his tariff policy has rattled markets. He said that short-term disruption is worth it if it leads to a stronger, fairer economy in the future.

“We want fair trade. That’s all,” Trump said. “Other countries charge us huge fees. We’re just asking for the same in return.”

He added that America’s economy is resilient and can handle the shake-up. According to him, long-term gains will come from forcing trading partners to agree to better deals.

This stance matches Trump’s “America First” policy from his previous term. He often argued that U.S. workers and companies suffer under global trade deals and that high tariffs protect American jobs.

Markets React with Uncertainty

Still, financial markets around the world reacted with caution and concern. The announcement led to drops in major stock indexes, especially in sectors that rely on global supply chains.

Investors are worried that higher tariffs could lead to trade wars, where countries take turns raising fees on each other’s goods. This can cause prices to rise, hurt companies, and slow down the global economy.

Experts also fear that China could respond with its own tariffs on American goods. In the past, China has hit back with fees on U.S. agriculture, energy, and cars.

Supporters Say Tariffs Help U.S. Workers

Despite market concerns, some American groups praised Trump’s move. U.S. steelmakers, for example, say they can’t compete with cheap imports. They believe tariffs will help them grow and create more jobs.

Some small business owners agree. “It’s about time we stop letting China flood our market,” said Joe Ramirez, who runs a tool-making company in Ohio. “We need to protect our own workers.”

Labor unions in industries like steel and auto also support tougher trade rules. They believe fair competition will help raise wages and secure long-term work.

Critics Warn of Higher Prices

However, other voices warn of risks to American families. Higher tariffs often mean higher prices for everyday goods. Items like phones, TVs, and washing machines may get more expensive.

Retailers and tech firms have expressed concern. Many rely on Chinese suppliers for parts and finished products. If costs go up, they may have to raise prices or cut jobs.

Some economists argue that tariffs act like a tax on consumers. They say the burden often falls on the buyer, not the foreign company.

A Heated Political Topic

Trump’s trade policy has always been a hot topic in U.S. politics. Supporters say he stands up for American workers. Critics say he’s risking economic damage for short-term political gain.

In recent weeks, trade has become an even bigger focus as Trump eyes another run for the White House. His team has been meeting with business leaders, lawmakers, and international trade experts to refine his message.

Whether the strategy will pay off remains to be seen. But one thing is clear — Trump is not backing down from his trade war stance.

“I’m not afraid to stand up for this country,” he said on Wednesday. “If that makes people nervous, so be it.”