New Delhi: In a major bloodbath triggered by Donald Trump’s sweeping tariffs, stock markets in Asia and Europe crashed on Monday, and even US stocks are set for a third day of huge losses.
The US President, though, was unperturbed by the turbulence in the markets, as he doubled down on his firm stance and tough decisions which has started a trade war with China and other countries.
“Oil prices are down… there is no Inflation,” Trump claimed, trying to reassure Americans.
Taking to his social media platform Truth Social, Trump wrote: “Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION, and the long time abused USA is bringing in Billions of Dollars a week from the abusing countries on Tariffs that are already in place.”
Trump criticised “biggest abuser” China for imposing counter tariffs.
“This is despite the fact that the biggest abuser of them all, China, whose markets are crashing, just raised its Tariffs by 34%, on top of its long-term ridiculously high Tariffs (Plus!), not acknowledging my warning for abusing countries not to retaliate. They’ve made enough, for decades, taking advantage of the Good OL’ USA! Our past ‘leaders’ are to blame for allowing this, and so much else, to happen to our Country. MAKE AMERICA GREAT AGAIN!” Trump stated.
China, which retaliated against Trump’s tariffs with 34 per cent additional duties on US imports from April 10, has threatened to sue Washington at the World Trade Organization and restrict export of rare earth elements used in high-end medical and electronics technology.
Trump vs US Federal Reserve chief
Trump’s claims on ‘no inflation’ came days after US Federal Reserve Chair Jerome Powell warned that US tariffs are likely to raise inflation and slow down growth, with an “elevated” risk of high unemployment.
“It is now becoming clear that the tariff increases will be significantly larger than expected,” Powell said at an event in Virginia.
“The same is likely to be true of the economic effects, which will include higher inflation and slower growth,” he said. However, he felt it was “too soon” to consider changes to US monetary policy.
Trump, who has been urging US Federal Reserve Chief to immediately cut interest rates, accused him of playing politics while running the US central bank.
“This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always ‘late,’ but he could now change his image, and quickly. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!” Trump posted three days ago.
It was Trump who first nominated Powell to run the Fed, but then turned against him during his first term.
