President Trump talks tariffs, economy with Cabinet

WASHINGTON (Gray DC) - The downward slide in the stock market continues just a day after financial markets posted their biggest gains in more than two decades. President Donald Trump maintains an upbeat outlook on the U.S. economy.

Trump and his economic team remain confident that in the long-term, his tariffs plan will reduce America’s trade imbalance.

Just a day after pausing his so-called reciprocal tariffs for the next 90 days, President Trump, at a Cabinet meeting, said he believes that his tariffs policy will be a long-term economic win, but could be bumpy in the short-term.

“We think we’re in very good shape,” Trump said during the Cabinet meeting. “We think we’re doing very well. Again, there’ll be a transition cost and transition problems, but in the end, it’s going to be a beautiful thing.”

Thursday the Dow declined 2.5%, while the tech-heavy NASDAQ lost more than 4%. Trump’s message for countries that don’t reach trade deals with the U.S. before the 90-day tariff pause elapses.

“If we can’t make the deal that we want to make or we have to make or that’s good for both parties, it’s gotta be good for both parties... then we go back to where we were.”

Economists believe tariffs could boost inflation and weigh on growth.

Interior Secretary Doug Burgum said he believes the President’s tariffs will help whittle away at what he calls America’s $1.2 trillion trade deficit.

“It’s going to take us a while to re-onshore manufacturing,” Burgum told White House Correspondent Jon Decker. “It’s going to take us a while to rebuild our industrial base, but if you said ‘what are they going to buy from us tomorrow,’ they can buy energy from the US. We’re the energy superpower. They could buy ag products. We not only feed ourselves, but we can feed the world.”

Thursday the consumer price index showed inflation slowing more than expected. In addition, the European Union said it would suspend its retaliatory tariffs on the U.S. for the next 90 days.