Trump Says China 'Will Probably Eat Those Tariffs' To Cushion The Blow On US Consumers

U.S. President Donald Trump suggested on Tuesday that China could look to absorb some of the tariffs to soften the impact on American consumers.

“You don’t know whether or not China’s going to eat it. China probably will eat those tariffs,” Trump said in an interview with ABC News.

The Republican President assured that “great times are ahead” amid growing concerns over his handling of the economy.

He also agreed that the 145% tariffs on Chinese imports were equivalent to a near-embargo.

“That’s good. They deserve it,” Trump said.

The president’s comments marked a notable shift from his stance last week when his administration signaled that the U.S. would look to lower tariffs on Beijing.

“China was making $1 trillion a year. They were ripping us off like nobody has ever ripped us off. Almost every country in the world was ripping us off. They’re not doing that anymore,” Trump said.

While Trump has paused tariffs on some imports from China, a trade war between the world’s two largest economies has already spooked the markets and economists about a probable recession.

According to freight logistics firm Flexport, container bookings from China to the U.S. have already dropped 60% after tariffs took effect.

While senior members of the Trump administration have been bullish about bringing China to the negotiating table, the two countries have yet to begin discussions on tariffs.

U.S. Treasury Secretary Scott Bessent did not answer on Tuesday whether talks with China were underway and said that Trump is going to be involved in all the trade discussions.

The Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, was down 0.4% in extended trading on Tuesday, while the SPDR S&P 500 ETF Trust (SPY) was down 0.3%. At the same time, iShares China Large-Cap ETF (FXI) was down 0.1%.

Also See: Top Steel Producer Nucor Continues To See Healthy Orders Amid Trump Tariff Uncertainty

For updates and corrections, email newsroom[at]stocktwits[dot]com.