Donald Trump on Wednesday acknowledged that his tariffs could result in fewer and costlier products in the United States, saying American kids might “have two dolls instead of 30 dolls”, but he insisted China will suffer more from his trade war.
The US president has tried to reassure a nervous country that his tariffs will not provoke a recession, after a new government report showed the US economy shrank during the first three months of the year.
Trump was quick to blame his Democratic predecessor, Joe Biden, for any setbacks while telling his cabinet that his tariffs meant China was “having tremendous difficulty because their factories are not doing business”, adding that the US didn’t really need imports from the world’s dominant manufacturer.
“You know, somebody said, ‘Oh, the shelves are going to be open,’” Trump continued, offering a hypothetical. “Well, maybe the children will have two dolls instead of 30 dolls. So maybe the two dolls will cost a couple bucks more than they would normally.”
His remarks followed a defensive morning after the commerce department reported the US economy shrank at an annual rate of 0.3% during the first quarter. Behind the decline was a surge in imports as companies tried to front-run the sweeping tariffs on autos, steel, aluminum and almost every country. And even positive signs of increased domestic consumption indicated that purchases might be occurring before the import taxes lead to price increases.
Trump pointed his finger at Biden as the stock market fell Wednesday morning in response to the gross domestic product report.
“This is Biden’s Stock Market, not Trump’s,” the Republican president, who took office in January, posted on his social media site. “Tariffs will soon start kicking in, and companies are starting to move into the USA in record numbers. Our Country will boom, but we have to get rid of the Biden ‘Overhang.’ This will take a while, has NOTHING TO DO WITH TARIFFS.”
But the GDP report gives Democrats ammunition to claim that Trump’s policies could shove the economy into a recession. Democrats’ statements after the GDP report noted how quickly the economy, which still has a healthy 4.2% unemployment rate, appears to lose momentum within weeks of Trump returning.
“Trump has been in office for only 100 days, and costs, chaos and corruption are already on the rise,” said Jeff Merkley, a Democratic senator from Oregon. “The economy is slowing, prices are going up and middle-class families are feeling the pinch.”
发表回复