Trump Meets El Salvador’s Crypto-Friendly President Bukele, Reaffirms Tariff Policy
U.S. President Donald Trump welcomed El Salvador’s President Nayib Bukele to the White House on April 14. Both leaders, known for their strong support of cryptocurrency, exchanged praise during the meeting.
Trump applauded Bukele’s leadership, telling the people of El Salvador, “You have one hell of a president.”
He also reiterated his stance on trade, declaring, “Tariff is the most beautiful word in the dictionary… well, after God, family, love, and relationship.” The president has often described tariffs in glowing terms.
On April 2—referred to by Trump as “Liberation Day”—the U.S. imposed “reciprocal tariffs” on 180 countries. China, the main target, responded swiftly by increasing tariffs on U.S. imports.
Since then, U.S. tariffs on Chinese goods have soared to 145%, while China has retaliated with a 125% hike on American imports. Although Trump temporarily suspended tariffs on neutral and allied nations for 90 days starting April 9, China was excluded from the pause.
In a further escalation, China recently halted exports of several vital rare earth elements and minerals. These materials are essential to key U.S. industries, including automotive, aerospace, semiconductors, and defense manufacturing.
Despite opening in the green on April 14, the U.S. stock market gave up early gains amid the ongoing trade tensions.
U.S.-China Trade War Escalates
The meeting comes amid rising tensions in the ongoing U.S.-China trade war. On April 2, President Trump declared the day “Liberation Day” and imposed reciprocal tariffs on 180 countries, targeting trade imbalances and unfair practices. China, the primary focus of the move, swiftly retaliated by hiking its tariffs on American goods.
- U.S. tariffs on Chinese imports now stand at 145%.
- China has countered with 125% tariffs on U.S. products.
Despite announcing a 90-day pause on tariffs for neutral and allied nations on April 9, China remained excluded from the relief, further fueling the conflict.
Rare Earth Elements: China Strikes Back
In a strategic response, China has suspended the export of several critical rare earth minerals—a move that could disrupt global supply chains. These materials are essential for manufacturing electric vehicles (EVs), semiconductors, aerospace components, and military-grade technology. The United States relies heavily on China for rare earth imports, making this a serious geopolitical flashpoint.
Stock Market Reaction
The stock market opened on a positive note on April 14, buoyed by short-term optimism. However, escalating trade tensions and supply chain concerns caused the market to reverse course, with major indices losing early-session gains.
Key Takeaways:
- Trump and Bukele reaffirm their pro-crypto stance.
- U.S.-China tariff war intensifies with record-high import duties.
- China halts rare earth exports, threatening critical U.S. industries.
- Global stock markets react to escalating economic confrontation.
