Trump Dismisses Stock Market Plunge Amid Trade Tensions With China During Cabinet Meeting

The stock market experienced a significant decline on Thursday, coinciding with escalating trade tensions between the United States and China. President Donald Trump, during a meeting with his Cabinet secretaries, stated that he was unaware of the market's fall due to his extended duration in the meeting.

In response to a reporter's inquiry regarding the stock market's performance, President Trump deferred to his Treasury secretary, Scott Bessent, who was present in the meeting. Bessent responded by indicating that the fluctuations, such as being up two and down one or up ten and down five, were not concerning. He expressed confidence that as discussions with other countries progressed and their best offers were received, the situation regarding tariffs would become more certain over the next 90 days.

Increased Tariffs and Economic Turmoil

The Trump administration implemented a substantial increase in tariffs on Chinese goods, raising them to 145% in response to China's retaliatory tariffs on U.S. products. This move came as Washington temporarily reduced most of its reciprocal tariffs, with the exception of China. The imposition of these tariffs instigated a week of economic upheaval, as apprehensions about a potential trade war heightened significantly.

Negotiations and Potential Agreements

President Trump indicated that discussions were underway to explore potential agreements with various countries. However, he emphasized that there was no immediate urgency to finalize a deal solely for the sake of it. He mentioned that numerous countries had expressed interest in negotiating with the U.S. following the implementation of the tariffs.

Transition Problems and Future Outlook

During the meeting, President Trump acknowledged that the tariffs would present "transition problems." Nevertheless, he expressed optimism, asserting that in the long run, the situation would yield positive outcomes. He emphasized the importance of taking actions that should have been undertaken years ago, underscoring his belief in the eventual benefits of the tariff measures.