US Officials Link Market Plunge to China Amid Tariff Controversies

On April 7, 2025, traders were observed working on the floor of the New York Stock Exchange as a wave of unrest began to unfold regarding the US economy. Senior officials within the White House have made surprising allegations connecting China's influence to a significant drop in the US stock market, specifically naming DeepSeek, a Chinese artificial intelligence company, as a key factor in the backlash against US economic strategies which include extensive “reciprocal” tariffs.

A Chinese analyst responded sharply to these accusations, labeling them as irrational and indicating that such comments are shocking even to the American populace. BuzzFeed highlighted an incident involving Vice President JD Vance, who made derogatory remarks about Chinese citizens while discussing trade policies, which drew widespread condemnation, with many Americans expressing embarrassment over his comments about “Chinese peasants.”

Moreover, Scott Bessent, the US Treasury Secretary, suggested that the recent market downturn is more closely related to the introduction of DeepSeek than to President Trump’s economic strategies. He implied that the situation reflects deeper issues related to a group of top-performing tech stocks, rather than solely attributing the decline to the administration's tariff policies.

Analyst Thomas L. Friedman noted a stark contrast between the US and China, arguing that while America is focused on imposing tariffs, China is investing in research and innovation to bolster its economy. Reports indicate that US stocks have plummeted roughly 10% shortly after Trump announced a more aggressive tariff regime, largely criticized by economists who warn it could lead to inflation and hamper growth.

Chinese officials have rebutted these tariff increases, labeling them as acts of economic bullying that infringe on the rights of other nations, particularly those from the Global South. They argue that the US measures disrupt international trade dynamics and harm global economic recovery efforts, emphasizing that such protectionist policies will likely be met with substantial pushback from the global community.