US President Donald Trump declared on Monday that despite significant global market declines, there is no inflation in the United States. He accused previous US leaders of implementing economic policies that allowed countries like China to exploit America.
Responding to worldwide market downturns, Trump stated, 'Oil prices have decreased, interest rates are down (the slowly acting Fed should cut rates), food costs have decreased, and there is no inflation. America, long exploited, is now generating billions weekly from countries previously abusing tariffs.'
'China Ignored My Warning'
Trump emphasized that China, dismissing his warning of no retaliation, has recently increased tariffs by 34%. He noted that existing tariffs are generating billions in revenue weekly.
Trump said, 'Despite being the greatest abuser, China with faltering markets has upped tariffs by 34%, surpassing its historically excessive tariffs. They ignored my caution against retaliation and have exploited America for decades. Fault lies with weak policies of our former leaders who allowed this.'
Massive Declines in Stock Markets
On Monday, global stock markets experienced massive declines. The US benchmark index S&P 500 was expected to open with an almost 2% drop, having fallen over 17% since its February peak, nearing a bear market.
According to Deutsche Bank analysts via The New York Times, 'Currently, there's no indication that market declines will halt or move towards stabilization.' This downturn's impact is clearly visible in Asian markets.
Trump Declares Tariffs a 'Beautiful Thing'
Japan's Nikkei index plummeted more than 7% in early trading. Meanwhile, the Topix index dropped about 8%, and South Korea's Kospi index fell by 4.8%. Amid growing concerns about rising prices, US President Donald Trump dismissed these worries on Sunday evening, describing tariffs as 'a very beautiful thing.'