“Oil Prices Are Down, There Is No Inflation”: Trump Defends Tariffs Amid Global Market Meltdown

As China slaps back with 34% tariffs and files a WTO case, global markets crash while Trump claims tariffs are boosting the US economy.

New York | April 7, 2025 — President Donald Trump remained defiant in the face of worldwide financial turmoil triggered by his sweeping tariff policy, even as global markets reeled and warnings of a recession intensified.

Also Read: Sensex Crashes Over 2,200 Points Amid Trump’s Tariff Shock; Nifty Drops 3%

Posting on Truth Social, Trump wrote:

“Oil prices are down, interest rates are down (the slow-moving Fed should cut rates!), food prices are down, there is NO INFLATION…”

He insisted that tariffs are bringing in billions of dollars to the US and lashed out at China, calling it the “biggest abuser” of US trade generosity. Beijing recently retaliated with 34% tariffs on all US imports, effective April 10, and vowed to take the matter to the World Trade Organization (WTO).

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Markets Plummet Globally

The fallout has been severe:

• Asian markets: Japan’s Nikkei 225 and Taiwan’s benchmark index both triggered circuit breakers, halting trade temporarily amid sharp 8–10% drops.
• European stocks: Paris and London fell over 6%, while Amsterdam, Oslo, and Milan dropped 3–5%.
• India’s markets: The Sensex crashed 3,939 points (5.22%), while Nifty plunged 1,160 points (5.06%), wiping out over ₹20.16 lakh crore in investor wealth by midday.

China Hits Back

Also Read: Goldman Sachs Raises US Recession Risk to 45% Amid Trump Tariffs, Lowers Growth Forecast

Responding strongly, China’s foreign ministry accused the US of “economic bullying” and “typical unilateralism.”

“Threats and pressure are not the right way to deal with us,” said spokesperson Lin Jian, announcing new tariffs and export restrictions on rare earth elements vital to electronics and medical tech.

Trump Pushes Fed to Cut Rates

Amid the meltdown, Trump ramped up his attacks on Fed Chair Jerome Powell, demanding immediate rate cuts:

“CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!” Trump declared online.

Powell, however, warned of higher inflation and slower growth, stating:

“The economic effects will be significantly larger than expected.”

He signaled no urgency in slashing rates, with the Fed currently holding steady at 4.25–4.50%.

Goldman Sachs Raises Recession Odds

As the fallout spreads, Goldman Sachs raised the probability of a US recession to 45%, citing “tightening financial conditions” and “foreign consumer boycotts.” If the full April 9 tariffs are implemented, the effective tariff rate could spike by 20 percentage points.

Trump Unfazed

Despite the chaos, Trump remains resolute:

“ONLY THE WEAK WILL FAIL! Big business is not worried… they know [tariffs] are here to stay.”

His strategy is rooted in forcing foreign companies to manufacture in the US and reworking global trade deals under new, tougher terms.

With the world economy on edge, markets crashing, and geopolitical tensions rising, President Trump’s aggressive tariff gamble could redefine the global economic order — for better or worse.

Tags:
Trump Tariffs 2025, China-US Trade War, Global Recession Risk, Stock Market Crash, Trump vs Powell, WTO Tariff Dispute, Oil Prices, Inflation Debate, Global Economy, Nifty Crash, Sensex Fall, Jerome Powell