The President of the United States, Donald Trump, issued a strong message to Americans this Monday to not be “weak” or “stupid,” but to be “strong, brave, and patient” in response to the economic reforms he has enacted since taking office.
Minutes before the New York stock market opened with a new and expected decline, Trump defended his global trade war.
"United States has the opportunity to do something that should have been done DECADES AGO! Don't be weak! Don't be stupid! Don't be a PANICAN (a new party based on weak and stupid people!)" he wrote on X.
"Be strong, brave, and patient, and GREATNESS will be the result!", he added.
Previously, in another post, he asserted that oil prices and interest rates are decreasing and that the Federal Reserve, which he said moves slowly, "should lower the rates."
Trump denied that there is inflation and emphasized that the United States has been "abused" for a long time, and that now they are receiving a lot of money from the abusers.
"Food prices are falling, THERE IS NO INFLATION, and the U.S., which has been abused for a long time, is receiving billions of dollars a week from the abusing countries thanks to the tariffs that are already in place," he added.
The leader did not miss the opportunity to launch an attack against China, which he referred to as "the biggest abuser of all."
"China, whose markets are collapsing, has just raised its tariffs by 34%, in addition to its ridiculously high long-term tariffs (and more!), ignoring my warning that abusive countries should not retaliate. They have already gained enough, for decades, taking advantage of the good old USA!" he warned.
"Our previous 'leaders' are to blame for allowing this, and many other things, to happen to our country. LET'S MAKE AMERICA GREAT AGAIN!", he concluded.
Federal Reserve on alert
The U.S. Federal Reserve announced the holding of an extraordinary meeting of its board of governors today at 11:30 AM local Washington time (3:30 PM GMT) following a day of significant losses in Asian and European markets due to the trade war initiated by Trump.
After the meeting, which was closed to the public, the board will publish a statement on its website regarding the matters discussed.
After Trump announced global tariffs of 10% and higher rates for other regions and countries such as China and the European Union, the markets reacted with significant losses.
China's response to the tariffs announced by Trump on Wednesday has triggered a domino effect in stock markets around the world in recent hours, due to fears that the current situation could lead to a global recession.
U.S. media report that the Tokyo Stock Exchange fell by nearly 8%, while the Hong Kong Hang Seng plunged by 13.2%, marking its worst decline since the financial crisis of 2008.
For their part, the main European markets opened with losses averaging around 6%, although several have moderated their declines somewhat later on.
Wall Street, for its part, started trading with declines of about 4%.
In the case of the major U.S. tech companies, the heavyweights that support Wall Street, the corrections have been particularly sharp.
Dollar opening today down
The dollar index, which compares the performance of the US currency against the other six major currencies in the world, opened with a depreciation of 0.13%.
The euro rises by 0.24% against the greenback, while the pound falls by 0.35%.
Bitcoin, the currency with the largest assets in the cryptocurrency market, has fallen 7.0%, dampening investor appetite.
The price of West Texas Intermediate (WTI) crude oil, a benchmark for the Mexican blend, has fallen by 2.4%, following a significant cut by the Saudi Arabian government in the price of its light crude. The performance in metals and grains is negative.
Contrary to what Trump says, JPMorgan Chase & Co. -which is the largest investment bank in the world- predicts a contraction in GDP, high inflation, and rising unemployment, in a stagflation environment driven by the new trade policy of the current administration.
JPMorgan Chase & Co has raised alarms by predicting a economic recession in the U.S. in the second half of 2025.
Meanwhile, a report from Tax Foundation, a non-partisan think tank based in Washington, indicated that the new "reciprocal" tariffs announced by President Trump will result in an average increase of over $2,100 in expenses per American household this year.
Frequently Asked Questions about Donald Trump's Economic Policies and Tariffs
Does Donald Trump deny the existence of inflation in the United States?
Donald Trump has denied that there is inflation in the United States, claiming that food and oil prices are falling. However, this statement contrasts with warnings from entities like the Federal Reserve, which caution about a potential inflationary surge due to the new tariffs imposed by his administration.
How will Trump's new tariffs affect American households?
According to a report by Tax Foundation, the new tariffs announced by Trump will result in an average increase of over $2,100 annually per American household by 2025. This is because, although tariffs are levied on importers, in practice, these costs are often passed on to the final consumers.
What impact do Trump's tariffs have on global financial markets?
Trump's tariffs have caused significant declines in global financial markets, with substantial losses in stock exchanges across Asia, Europe, and Wall Street. This reaction is due to fears of a large-scale economic recession resulting from the trade war triggered by the tariff policies of his administration.
What measures has Trump taken in his trade policy regarding China?
Donald Trump has imposed additional tariffs of 10% globally, and higher rates on specific products from China as part of his trade strategy. He has also threatened to increase these tariffs if China does not withdraw its trade retaliations, which has escalated the trade war between the two countries.
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