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President Donald Trump on Thursday expressed ongoing optimism that his unspoken trade war for US industries would bear fruit, even if he recognized some negative consequences for financial markets in the short term.
Trump said at the beginning of a cabinet meeting that he and his cabinet “talked about many different things” and that he has designated recent economic indicators showing inflation and interest rates on a downward track.
He also described the unrest in stock and bond markets, which led to his sudden decision to reversal massive increases in import duties of almost every country in the world as “a big day”, which emphasizes the record gain in the hours after announcing the move.
‘We work with many different countries, and it’s all going to work out well. I think it’s going to work out very well. But we are in good shape, “Trump said as he repeated an often used line about the lack of inflation during its first term after importing limited rates on some classes, including steel and aluminum.
He said his first -term experience with limited rates should mean that there will be no runaway inflation, due to the massive rates of 145 percent he is now imposing on all US imports from China, despite the predictions of most economists and that the move is needed to force a return from industrialized manufacturing to US bank.
“We think we’re in a very good shape. We think we are doing very well again. There will be a transitional cost and transition problems, but in the end it will be, it will be a beautiful thing, “he said.
Trump’s positive remarks and the dismissal of any risk of inflation by more than doubling the cost of importing one of America’s largest trading partners, just as stock markets were in the middle of a massive slide and wiped out the historic profits they made a day earlier when he announced a 90-day break.
At 12.45 hours Thursday, the Dow Jones industrial average was 1.687 points, or 4 percent, and the Nasdaq index fell 957 points, or 5.5 percent.
Just a day before, the stock markets rose after Trump revealed a 90-day postponement on his tax on the orchard-a move that spurred investors to a rocky week.
When asked about the latest stock market drive during a demand and answer session with reporters, Trump said he did not have the chance to see the latest shares numbers because he was working on the cabinet meeting.
He ceded the floor to Treasury Secretary Scott Besent, who told reporters that he believed the US would “end up in a place of great certainty” during the 90-day break on the rates that Trump announced on Wednesday. Besent also described the most recent inflation data released this week as ‘very good’.
‘Oil is off, we had a successful bond market. So I think nothing unusual, ‘he added.
A short time later, Trump was asked if he would revive the same excessive import tax that sent shares and the US government bonds since its April 1 Liberation Day announcement as soon as the three -month period laid out on Wednesday.
He said it would depend on the question of whether the countries who asked to negotiate trade agreements came to the table with something “good for both parties”.
“Well, that’s what would happen. I mean, if we don’t have the agreement we want to tackle, or we have to make, or it, you know, good for both parties, it must be good for both parties, ‘he said.
Trump further placed or any rates he resumed after the break would use the same unauthorized formula based on the value of a given country’s trading deficit with the US, Trump would not exclude it.
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