Trump says “No inflation” as markets plunge globally, blames China and past US leaders

US President Donald Trump has denied any inflationary pressure in the American economy even as global markets tumble and financial analysts raise alarm. Amid one of the sharpest declines since the pandemic era, Trump defended his sweeping tariffs on 184 countries and placed the blame for economic instability on foreign nations—particularly China—and past US administrations.

Taking to social media on Monday, Trump said, “Oil prices are down, interest rates are down, food prices are down, there is NO INFLATION.” He added that the tariffs were bringing in billions of dollars each week and insisted that the current economic disruption was a necessary step to stop the decades-long exploitation of the United States by other countries.

The global sell-off followed China's retaliatory move—raising tariffs by 34%—despite Trump’s earlier warnings. Trump labelled China as the "biggest abuser of them all," accusing Beijing of ignoring his red line and continuing to impose excessive tariffs. He stated that the U.S. would not remove its tariffs “unless they pay us a lot of money,” calling the policy "a very beautiful thing."

Global financial markets, however, reacted sharply. The S&P 500 was poised to drop another 2%, pushing it further into bear market territory after already falling 17% from its February peak. Analysts from Deutsche Bank, quoted by The New York Times, said there’s no indication that markets are stabilizing anytime soon.

The shockwave spread across Asia, with Japan’s Nikkei plunging over 7% and South Korea’s Kospi dropping nearly 5%. European indices also showed red across the board as investor sentiment turned jittery over trade uncertainties and tariff wars.

Despite the downturn, Trump remained defiant, repeatedly highlighting that the tariffs were generating massive revenue and dismissing concerns over price rises. He firmly placed the blame on previous U.S. administrations for allowing such trade imbalances to flourish. “They’ve made enough, for decades, taking advantage of the Good OL’ USA,” he said.