President Donald Trump acknowledged that his tariffs could lead to fewer and costlier products in the US, saying American kids might “have two dolls instead of 30 dolls.” However, he insisted China would suffer more from his trade war. The comment came after a government report showed the US economy shrank during the first three months of the year.
Trump blamed his Democratic predecessor, Joe Biden, for any setbacks and claimed that his tariffs were meant to pressure China into opening up its markets. He said Chinese factories were “having tremendous difficulty” due to the tariffs, but dismissed data suggesting a negative impact on the US economy.
Experts argue that Trump’s policies could lead to a recession, citing the country’s continued low unemployment rate of 4.2%. A top House Democrat said that Trump’s approach reflected a misunderstanding of what domestic companies need to invest and create jobs.
The trade war has already disrupted global supply chains, with many countries imposing tariffs on each other. Trump highlighted positive investments from US companies, but his economic message contains conflicting arguments and dismisses data raising red flags about the impact on the economy.
Source: https://apnews.com/article/trump-economy-tariffs-gdp-7494825851dcef94ec81475124f9326f