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On the same day the U.S. economy shrank for the first time in three years, President Donald Trump dismissed concerns that Americans would pay the price for his massive tariffs.
Speaking during a Cabinet meeting today at the White House, Trump responded to a question regarding his tariffs against China, admitting that it could lead to higher costs for parents.
“Somebody said, ‘Oh, the shelves are gonna be open,’” Trump told reporters. “Well, maybe the children will have two dolls instead of 30 dolls, and maybe the two dolls will cost a couple of bucks more.”
The president shifted the blame toward former President Joe Biden, claiming Biden put the U.S. under “fiscal risk” during his time in office. It was a strategy Trump used earlier today to deflect criticism as the the Department of Commerce reported that the GDPfell 0.3 percentin the first quarter of 2025, marking the first time theeconomyhas contracted since 2022. In response to the news, the Dow Jones dropped over 600 points, while the Nasdaq and S&P 500 each dropped over two percentage points.
“This is Biden’s Stock Market, not Trump’s,” the presidentwrote on Truth Social. “I didn’t take over until January 20th.Tariffswill soon start kicking in, and companies are starting to move into the USA in record numbers.”Trump insisted the stock market plunge had “NOTHING TO DO WITH TARIFFS” and assured Americans they just had to “BE PATIENT!!!”
Trump, who promised during his reelection campaign to bring down the price of eggs and other groceries “on Day One,” delivered his remarks as inflation indicators areacceleratingand wage growth is decreasing.
The president’s 145 percent tariff on China has caused costs for American companies to skyrocket, according to The New York Times, with the companies predicting product shortages and higher prices and some business owners already consulting bankruptcy lawyers.
White House adviser Stephen Miller addressed Trump’s comments about the cost of toys during a press briefing on Thursday, claiming Trump meant that “you probably would be willing to pay more for a better-made American product” than one from China that “might have, say, lead paint in it and is not as well constructed.”
The concern over toys, and Christmas, is real, though. “We have a frozen supply chain that is putting Christmas at risk,” Greg Ahearn, CEO of the Toy Association, told the Times. “If we don’t start production soon, there’s a high probability of a toy shortage this holiday season.”
Some Republican lawmakers have pushed back on the idea that Trump is not responsible for the economy. “By introducing tariffs to the extent that he has, this is President Trump’s economy now,” Sen. John Kennedy (R-La.) said earlier this month. “I don’t think it’s believable to say that President Biden or any former administration caused what’s happening.”
The first 100 days of Trump’s return to the White House have seen the president and his administration ravage and restructure the federal government in his crusade to exert executive power over the American people. Today, Trump gloated to reporters, “I really believe that the next 100 days are going to be even better than this.”
