United States President Donald Trump defended his tariff policy on Friday, declaring that the US is "doing really well" despite the ongoing trade showdown with China, which escalated further after Beijing raised duties on US imports to 125% earlier today.

"Very exciting for America, and the World!!! It is moving along quickly," Trump wrote on TruthSocial.

Meanwhile, the markets reacted nervously to economic uncertainty triggered by the trade war, with the Dow Jones sinking more than 2,000 points at the closing bell on Thursday.