President Donald Trump recognized on Wednesday that his tariffs could result in less products and more expensive in the United States, stating that American children could “receive two dolls instead of 30”, but insisted that China will suffer more for their commercial war.
The president has tried to reassure a nervous country, stating that his tariffs will not cause a recession, after a new government report showed that the US economy contracted during the first three months of the year.
Trump hastened to blame his Democratic predecessor, Joe Biden, for any setback, while telling his cabinet that his tariffs meant that China was “having enormous difficulties because its factories were not operating,” adding that the United States really did not need imports of the main world manufacturer.
“Well, maybe children have two dolls instead of 30. So maybe the two dolls cost a couple more than normal,” said the president.
His comments occurred after a defensive morning after the Department of Commerce reported that the US economy contracted an annual rate of 03 % during the first quarter. Behind the fall was a sudden increase in imports, since companies tried to anticipate the wide tariffs on cars, steel, aluminum and practically all countries. Even the positive signals of greater internal consumption indicated that purchases could be produced before imports to imports cause a price increase.
Trump signed up for Biden while the stock market fell on Wednesday morning in response to the Gross Domestic Product report.
“This is the Biden Stock Exchange, not Trump,” published the Republican President, who assumed the position in January, in his social networks. “The tariffs will soon begin to be applied, and companies are beginning to move to the United States in record figures. Our country will prosper, but we have to get rid of the ‘excess’ of Biden. This will take time, it has nothing to do with tariffs.”
But the GDP report gives democrats arguments to affirm that Trump’s policies could take the economy to a recession. The statements of the Democrats after the GDP report indicated the speed with which the economy, which still maintains a healthy 4.2%unemployment rate, seems to lose impulse at a few weeks of Trump’s return.
“Trump has been in office for only 100 days, and costs, chaos and corruption are already increasing,” said Senator Jeff Merkley, a democrat for Oregon. “The economy is slowing down, prices are going up and middle -class families are feeling the consequences.”
The report was published at a time when Trump tries to focus on new corporate investments in the United States, while celebrating his centenary in office.
-Trump’s economic message contains contradictory arguments and dismisses data that generate suspicions.
He aspires to recognize the merit for his aggressive first 100 days back to the White House, which included mass layoffs of federal employees and the beginning of a commercial war with tariffs of 145% against China. He also wants to attribute the negative response of financial markets to Biden, who left office months ago. He affirms that his tariffs are negotiation tools to generate commercial agreements, but at the same time he has hundreds of billions of dollars in tariff revenues to cover their income tax cuts planned.
Trump highlighted the positive aspects of the GDP report at the cabinet meeting. However, this session revealed how its administration also tries to attribute the merit of policies involving the Biden administration.
The Secretary of Commerce, Howard Lutnick, spoke about his recent trip to Arizona to visit Taiwan Semiconductor Manufacturing Co. computer factories CO. The company points out on its website that announced plans in May 2020, during Trump’s first mandate, when the coronavirus pandemic disturbed the world economy, to build its first plant in Arizona. The company announced a second factory in December 2022, during the presidency of Biden. After obtaining commitments of up to 6,600 million dollars in 2024 thanks to the Bipartisan Law Chips and Science, TSMC announced plans for a third floor.
Trump reduced importance to government support that Biden facilitated the opening of computer chips factories in the country.
“They are building due to tariffs,” Trump said.
However, the Democrats rush that Trump inherited an economy with a stable trajectory of low unemployment and decreasing inflation, that their tariff plans have interrupted almost immediately.
“In just 100 days, President Trump has taken the US economy of solid and stable growth to a negative GDP,” said Heather Boushey, former member of the Council of Economic Advisors of the White House of Biden. This surprising change of fortune is due directly to the incoherence of its economic policy and its poor management of federal policy in general.
However, the White House commercial advisor, Peter Navarro, told the press that the fall of GDP was a “unique case” due to imports, which mathematically subtract value from economic activity. Navarro said that the tax cuts for the income of natural persons and companies planned by Trump would boost growth in the coming months.
“We only see good and forceful news,” Navarro said. “Therefore, the idea that a recession is coming should be discarded considerably.”
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