President Donald Trump on Monday claimed that there was "no inflation" in the United States, even as global stock markets experienced one of their steepest declines in years. His remarks came amid rising fears of a global recession, triggered in part by escalating trade tensions between the U.S. and China, as well as increasing investor anxiety over economic slowdowns in major economies around the world.
In a series of posts on social media addressing the global market meltdown, Trump sought to reassure Americans about the state of the U.S. economy and blamed previous American administrations for adopting what he described as weak and poorly negotiated trade policies. These, he said, allowed foreign nations—particularly China—to gain an unfair advantage over American businesses and workers.
“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 posted, insisting that the fundamentals of the American economy remained strong despite the chaos on Wall Street.
He also pointed fingers at the U.S. Federal Reserve, once again urging it to reduce interest rates more aggressively to stimulate the economy. Trump has frequently criticized the Fed for not aligning its monetary policy with his administration's objectives, calling its actions “too slow” and “too cautious.”
Trump’s remarks come just days after China imposed a 34% increase in tariffs on American goods in retaliation to new tariffs announced by the Trump administration. Trump warned earlier that any retaliation by other countries would be met with further penalties. However, Beijing appeared to ignore his warning, prompting a harsh response from the U.S. President.
Calling China “the biggest abuser of them all,” Trump said that the Chinese economy was beginning to crumble under the weight of American-imposed tariffs. “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,” he said. “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.”
His comments followed one of the worst trading sessions globally in recent months. On Monday, the S&P 500 index was expected to open nearly 2% lower, putting it within striking distance of bear market territory—defined as a drop of 20% or more from recent highs. The index has already fallen more than 17% from its February peak. Financial analysts and economists continue to warn that investor confidence remains deeply shaken.
“There’s no sign yet that markets are finding a bottom and beginning to stabilize,” analysts at Deutsche Bank were quoted as saying by The New York Times, pointing to continuing volatility and lack of clarity about where global trade relations and monetary policy are headed.
Asian markets fared no better. In Tokyo, the Nikkei 225 plummeted by over 7% during early trading hours. The Topix index, a broader gauge of Japanese equities, dropped nearly 8%, its worst single-day performance since the 2008 financial crisis. Meanwhile, South Korea’s Kospi index fell by 4.8%, reflecting broader unease in the region.
Despite concerns from economists and consumer groups about the possible inflationary impact of rising tariffs—particularly on imported goods—Trump continued to dismiss these fears, doubling down on his controversial trade strategy. On Sunday evening, in another social media post, he firmly stated that he would not lift tariffs “unless they pay us a lot of money.” He also described the tariffs as “a very beautiful thing,” claiming they were finally bringing accountability to countries that had long exploited America’s open markets.
Trump’s comments and the ongoing market turbulence underscore the fragility of the current economic climate. As both U.S. and global investors remain on edge, the world watches closely to see how this escalating trade war will shape the future of international commerce and financial stability.
