Trump: China losing billions, US gaining as tariff war intensifies

US President Donald Trump has made it clear that the decision to pause the increase in tariffs for 90 days on 75 countries was not influenced by the recent downturn in stock markets. 

Trump’s remarks came during a flight aboard Air Force One, where he addressed the sharp drop in stock market indices that many speculated might have led to the tariff pause, Caliber.Az reports via foreign media.

"Many say that this was the case, but that's not true," Trump told reporters, refuting claims that the market drop had a role in the decision.

When asked what factors did influence his decision, Trump explained, "I want to put the country in an incredible economic position, one that we should have been in many years ago. We are very strong. We are making billions of dollars a day. We used to lose billions. China is losing billions now. I don’t want them to lose, but they are losing billions, and we are making billions. I've turned everything around."

Trump also expressed optimism about the ongoing trade conflict with China, suggesting that a positive outcome was on the horizon. "I think something positive will come out of this," he said confidently. The President added that he had maintained a good relationship with Chinese President Xi Jinping, calling him "a very good and very smart leader."

Additionally, Trump reiterated his belief in the enduring strength of the US dollar in international markets. "If any country says they are giving up the dollar [in transactions], I can tell you that one phone call will be enough for them to go back to using the dollar," he said. "I believe the dollar is in an amazing position, it is stronger than ever."

Earlier, White House Press Secretary Caroline Levitt confirmed that Trump remains open to negotiating a trade deal with China, but the US tariff rate of 145% on Chinese goods remains unchanged.

The decision to pause tariff increases was made after Trump announced the imposition of tariffs on goods from 185 countries and regions starting April 2. The tariffs on China were set at 34%. In retaliation, China announced its own additional 34% tariffs on US products effective from April 10.

In response, Trump warned of a sharp rise in tariffs on Chinese goods to 104%, should Beijing refuse to engage in trade negotiations. This sparked countermeasures from China, which increased its tariffs on US goods to 84%. Trump then declared that the tariff rate on Chinese goods would rise to 125%, prompting Beijing to announce symmetrical retaliatory measures, effective April 12.

By Tamilla Hasanova