US President Donald Trump on Wednesday said that his tariff strategy might result in fewer and costlier products for American consumers, but the economic pain would hit China harder.
Speaking to his Cabinet amid fresh signs of economic slowdown, Trump downplayed concerns that the US economy is heading toward a recession. "Maybe the children will have two dolls instead of 30 dolls," Trump said, referring to the potential impact of tariffs on consumer goods. "So maybe the two dolls will cost a couple bucks more than they would normally."
His comments came just hours after the US commerce department reported that the economy shrank by 0.3 per cent in the first quarter of the year, the first contraction since the start of his second term. The decline was driven by a sharp surge in imports, as businesses rushed to stockpile goods ahead of sweeping tariffs on steel, aluminium, automobiles, and more.
Despite the negative data and a jittery stock market, Trump doubled down on his economic policy. "This is Biden's Stock Market, not Trump's," he wrote on his social media platform, referring to his Democratic predecessor. "Tariffs will soon start kicking in, and companies are starting to move into the USA in record numbers. Our Country will boom, but we have to get rid of the Biden 'Overhang.' This will take a while, has NOTHING TO DO WITH TARIFFS."
However, the administration's messaging appeared increasingly contradictory, celebrating foreign investment while brushing off warning signs. Trump highlighted major investment commitments from firms like Apple, Nvidia, Soft Bank, and Johnson & Johnson as proof that his "America First" approach was already bearing fruit, even as experts warned of broader economic uncertainty.
Democrats seized on the GDP report as proof that Trump's unpredictable trade tactics are undermining the economy.
"We've only seen the beginning of the dangerous impacts from Trump’s random policies," said Rep Suzan DelBene of Washington state, a top House Democrat. "US manufacturers still depend on parts and components from China. Chaos and dysfunction are not going to help build investment. A strong economy needs stability and certainty. We haven't seen that."
The US job market remains relatively strong, with unemployment at 4.2 per cent. But economists caution that continued trade tensions and inflationary pressure could erode consumer confidence and corporate investment.
Trump, who marked his 100th day in office this week, remains committed to using tariffs as a central tool in his economic agenda — even if it means Americans may face higher prices and limited choices in the short term.
Speaking to his Cabinet amid fresh signs of economic slowdown, Trump downplayed concerns that the US economy is heading toward a recession. "Maybe the children will have two dolls instead of 30 dolls," Trump said, referring to the potential impact of tariffs on consumer goods. "So maybe the two dolls will cost a couple bucks more than they would normally."
His comments came just hours after the US commerce department reported that the economy shrank by 0.3 per cent in the first quarter of the year, the first contraction since the start of his second term. The decline was driven by a sharp surge in imports, as businesses rushed to stockpile goods ahead of sweeping tariffs on steel, aluminium, automobiles, and more.
Trump on what China tariffs mean for Americans:
— RT (@RT_com) April 30, 2025
'Maybe the children will have 2 dolls instead of 30'
'And maybe they’ll cost couple of bucks more than they would normally'
Ready to pay that price? https://t.co/PfqQ4wLjBk pic.twitter.com/bj8ig0L5UP
Despite the negative data and a jittery stock market, Trump doubled down on his economic policy. "This is Biden's Stock Market, not Trump's," he wrote on his social media platform, referring to his Democratic predecessor. "Tariffs will soon start kicking in, and companies are starting to move into the USA in record numbers. Our Country will boom, but we have to get rid of the Biden 'Overhang.' This will take a while, has NOTHING TO DO WITH TARIFFS."
However, the administration's messaging appeared increasingly contradictory, celebrating foreign investment while brushing off warning signs. Trump highlighted major investment commitments from firms like Apple, Nvidia, Soft Bank, and Johnson & Johnson as proof that his "America First" approach was already bearing fruit, even as experts warned of broader economic uncertainty.
Democrats seized on the GDP report as proof that Trump's unpredictable trade tactics are undermining the economy.
"We've only seen the beginning of the dangerous impacts from Trump’s random policies," said Rep Suzan DelBene of Washington state, a top House Democrat. "US manufacturers still depend on parts and components from China. Chaos and dysfunction are not going to help build investment. A strong economy needs stability and certainty. We haven't seen that."
The US job market remains relatively strong, with unemployment at 4.2 per cent. But economists caution that continued trade tensions and inflationary pressure could erode consumer confidence and corporate investment.
Trump, who marked his 100th day in office this week, remains committed to using tariffs as a central tool in his economic agenda — even if it means Americans may face higher prices and limited choices in the short term.
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