Trump Says 'No Inflation' Amid Worst Market Crash Since 1929 After US Tariff Bomb

Trump Tariff War: Amid a sharp downturn in global markets, US President Donald Trump on Monday claimed that the United States is not experiencing inflation and doubled down on his support for tariffs. In a post responding to the economic turmoil, Trump argued that economic fundamentals remain strong in the US. 

“Oil prices are down, interest rates are down (the slow moving Fed should cut rates!), food prices are down, there is NO INFLATION,” Trump wrote, adding that tariffs are bringing in “billions of dollars a week from the abusing countries.”

Trump also took the opportunity to call on the Federal Reserve to cut interest rates, criticizing it as “slow moving” and warning that more decisive action is needed to stabilize the US economy.

In his message, Trump did not hold back from blaming past US administrations for what he described as decades of economic abuse by foreign nations. He focused his criticism particularly on China, which recently increased tariffs by 34 percent, ignoring what Trump called his “warning” not to retaliate.

“China, whose markets are crashing, just raised its tariffs by 34%, not acknowledging my warning… They’ve made enough, for decades, taking advantage of the Good OL’ USA!” Trump said.

He reiterated that tariffs will remain in place unless foreign countries “pay us a lot of money,” and once again described them as “a very beautiful thing.”

Bloodbath on the D street

Trump’s comments came as stock markets across the globe plunged. Bears dominated Dalal Street on Monday, April 7, triggering one of the most severe selloffs in recent memory. The BSE Sensex plunged 3,379.19 points or 4.48%, closing at 71,985.50, while the NSE Nifty nosedived 1,146.05 points or 5% to end the session at 21,758.40.

The market crash resulted in a staggering erosion of investor wealth, with the total market capitalisation of all BSE-listed companies dropping by Rs 19.4 lakh crore, now valued at Rs 383.95 lakh crore.

No sector was spared. The Nifty Metal index plunged 8%, Nifty IT declined 7%, and sectors such as Auto, Realty, and Oil & Gas lost over 5%. Broader markets were hit even harder mid-cap indices dropped 7.3%, and small-caps sank a brutal 10%.

Dow Jones futures fell 979 points (2.5%)

S&P 500 futures slid 2.9%

Nasdaq-100 futures crashed 3.9%

Friday had already seen the Dow lose 2,231 points, marking the first back-to-back 1,500+ point losses in history. The S&P 500 had its worst day since March 2020, while the Nasdaq Composite entered a bear market, down 22% from its peak.