Amid the tumbling stock market in the United States, following the White House clarification of tariffs on China to be at least 145 per cent and an earlier announcement of a 90-day pause on tariffs for over 75 countries, President Donald Trump addressed the challenges associated with his tariff policy, stating that there would be 'transition problems'.
During a cabinet meeting on Thursday (local time), Trump stated, 'There will always be transition problems' with his trade policies with pausing certain tariffs but expressed pride in achieving 'the biggest day in history' for markets on Wednesday.
Trump further remarked on the ongoing trade negotiations, noting the lack of time to discuss the deal with other nations.
However, he acknowledged that the talks are in 'good shape'.
"The biggest problem they have is that they don't have enough time in the day. Everybody wants to come and make a deal, and we're working with a lot of different countries, and it's all going to work out very well. I think it's going to work out really, very well, but we're in good shape," Trump added.
He also highlighted economic progress, claiming that consumer prices have dropped, inflation remains low, and energy costs and interest rates have decreased.
"Consumer prices have actually dropped. There's very little inflation... Energy costs are down. Interest rates are probably down... We're doing very well. It's been amazing. Everyone at this table is doing an incredible job... It's like they're friends. The relationships are very strong, and these meetings are very good," Trump noted.
While Trump's sudden reversal provided relief to many, investors and analysts caution that the unpredictable and inconsistent nature of his trade policies could dampen investment and potentially slow down global economic growth, as reported by CNN.
Regarding the 145 per cent tariffs still imposed on China, Beijing has stated that it remains open to negotiations with the US.
According to CNN, after a nearly 3,000-point rise the previous day, the Dow experienced a volatile day, falling by 1,015 points, or 2.5 per cent. The S&P 500 dropped 3.46 per cent, and the Nasdaq Composite fell 4.31 per cent.
Following its third-best day in modern history, the stock market faced a reality check. Despite the pause on most tariffs, the extensive damage from existing import taxes is unlikely to be quickly reversed, and the economy will take time to recover, as per CNN.
During the cabinet meeting, US Commerce Secretary Howard Lutnick provided an update on tariff negotiations, saying that the US is in talks with many countries, some of which have presented offers they would never have made without Trump's actions.
"We have so many countries to talk to. They have come with offers that they never, ever, ever would've come with but for the moves that the president has made demanding that people treat the United States with respect," Lutnick noted.
Meanwhile, US Treasury Secretary Scott Bessent spoke on the current market situation, emphasising the impending increase in the debt ceiling and a 'quite good' inflation report.
"We're going to get an increase in the debt ceiling, so that will be done and dusted ... for two years," Bessent said, adding that energy prices have dropped more than 20 per cent since January 20.
Trump also reiterated his goal of using tariff revenue to address the national debt, reduce taxes, create jobs, and enhance border security.
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