The President of the United States, Donald Trump, recently asserted that he has effectively resolved the issue of inflation, despite ongoing volatility in the financial markets following his implementation of global tariffs. During a meeting with Nayib Bukele, the President of El Salvador, in the Oval Office on Monday, Trump highlighted the latest consumer price index, which recorded a 2.4% inflation rate for March.
“We have to solve problems, and we already solved inflation. You know, if you look at the numbers, the numbers are incredible, actually. The stock market’s up. And we’re not letting other countries take advantage of this country like they have for the last 40 years,”
Trump stated when addressing the press.
Positive indicators in technology and tariffs
The U.S. President pointed to a significant announcement from tech giant Nvidia, which revealed plans to manufacture artificial intelligence supercomputers in the United States for the first time. He touted this development as a testament to the effectiveness of his tariff policies.
“Well, it’s one of the biggest announcements you’ll ever hear, because Nvidia, as you know, controls almost the entire sector, which is one of most important sectors in the world, between chips and semiconductors and everything else. And they’re the biggest,”
Trump emphasized during his remarks.
He continued to praise the impact of tariffs, referring to them as “the most beautiful word in the dictionary.” This optimistic outlook came after a week marked by significant market fluctuations, during which his administration began to relax some of its more stringent tariff measures.
Market reactions to tariff adjustments
Following Trump’s temporary easing of certain tariffs, global stock markets experienced an uptick on Monday. Additionally, the U.S. bond market showed signs of stabilization. The positive sentiment on Wall Street was bolstered by robust performances from major technology companies, including Apple, after Trump declared exemptions for smartphones, computers, and various electronic products from the latest tariff impositions. This exemption is anticipated to mitigate potential price increases for American consumers on imports from China.
The decision is likely to benefit U.S. importers, who were faced with the dilemma of either passing increased costs onto consumers or absorbing those costs themselves. Furthermore, the President stated his intention to consider temporary tariff exemptions for automotive manufacturers.
“I’m looking at something to help some of the car companies with it,”
Trump remarked, explaining that the automotive sector requires additional time to transition production from countries such as Canada and Mexico back to the United States.
He reassured that this transition is in progress and that manufacturers would soon be able to produce vehicles domestically, although they need more time to do so.
As a result of these developments, global stock markets showed a rebound, with notable gains in various countries: France saw an increase of 2.4%, Germany 2.9%, Japan 1.2%, and South Korea 1% as tensions from Trump’s trade conflict with China, the world’s second-largest economy, began to alleviate.