No inflation, says Trump as global markets crash after US tariff shock

President Donald Trump on Monday said that there was no inflation in the US, even as global markets fell sharply. He blamed past American leaders for economic policies that, he claimed, allowed foreign countries, like China, to take advantage of the United States.

In a post on responding to a worldwide market meltdown, Trump said, “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 also said that China, which recently raised tariffs by 34 per cent, had ignored his warning not to retaliate. He said tariffs already in place were bringing in billions of dollars each week.

Calling China “the biggest abuser of them all,” Trump also stated that Chinese markets were “crashing” in the face of global economic slump.

He added, “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.”

Global stocks dropped sharply on Monday. The S&P 500 was expected to open about 2 per cent lower, pushing it closer to a bear market after falling more than 17 per cent from its February peak. Analysts warned of continued uncertainty in the financial markets.

“There’s no sign yet that markets are finding a bottom and beginning to stabilise,” analysts at Deutsche Bank cited by The New York Times in its report.

In Asia, Japan’s Nikkei index dropped more than 7 per cent in early trading. The broader Topix was down nearly 8 per cent. The Kospi in South Korea fell 4.8 per cent.

On Sunday evening, Trump said he would not remove tariffs “unless they pay us a lot of money.” He dismissed concerns about rising prices, calling the tariffs “a very beautiful thing.”

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