‘Be cool! Everything is going to work out well’: Donald Trump tells US as China, EU retaliate with new tariffs

US President Donald Trump on Wednesday told Americans to remain ‘cool’ despite intensified trade war which has created global market panic.

Trump's remark came amid China and the European Union announcing retaliatory tariffs.

"BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!," Trump posted on his Truth Social platform.

In another post, Trump sought to convince investors that “THIS IS A GREAT TIME TO BUY!!!”

Earlier in the day, China hit back at Trump’s tariffs on Chinese exports with 84 per cent levies on its imports from America.

The hike in levies, up from 34 per cent, came hours after Trump’s explosive new tariffs on 60 countries, including 104 per cent on China, came into effect after midnight Wednesday US time.

Additionally, China added six US firms to its unreliable entity list, the country's Commerce Ministry announced on Wednesday.

EU also hit back, targeting more than 20 billion euros of US goods.

The 27-nation bloc, which Trump has accused of being created to "screw" the United States, will hit more than 20 billion euros' worth of US products, including soybeans, motorcycles and beauty products.

"These countermeasures can be suspended at any time, should the US agree to a fair and balanced negotiated outcome," the European Commission said after EU member states approved the measures.

Meanwhile, US Treasury Secretary Scott Bessent said that China's move to impose 84% retaliatory tariffs against the United States is unfortunate and a losing proposition for Beijing.

"I think it's unfortunate that the Chinese actually don't want to come and negotiate, because they are the worst offenders in the international trading system," Bessent said in an interview with Fox Business Network.

Bessent said allies wanted to discuss how to rebalance China's trade policies in talks with US officials.

"That is the big win here. The U.S. is trying to rebalance toward more manufacturing. China needs to rebalance towards more consumption," he added.