On Wednesday, Donald Trump finally admitted that his trade war with China has hurt the performance of the U.S. stock market. Though he admits that the trade war is causing major issues within the economy he adds that he had to confront China’s economic practices.
“Let me tell you if I wanted to do nothing with China, our stock market, our stock market would be 10,000 points higher than it is right now but somebody had to do this,” Trump told reporters at the White House. “It was out of control and they were out of control.”
On Wednesday afternoon around 1 p.m. in Washington, the Dow Jones Industrial Average stood at 26,332, up less than one percent for the day.
Just this week, Trump increased tariffs on Chinese to try to force Beijing into resuming talks on a far-reaching trade deal.
“We’ll see what happens, if they want to make a deal, they’ll make a deal, if they don’t want to make a deal, that’s fine,” Trump said.
Trump was asked if Chinese negotiators would visit Washington this month and he refused to answer.
So far, Trump has placed tariffs on some $360 billion of Chinese imports since the start of the trade war more than a year ago. He enacted a 15% duty on about $112 billion of Chinese products, mostly electronics on Sunday.
An existing 25% tax on about $250 billion of goods is set to rise to 30% on Oct. 1. A separate batch of about $160 billion in Chinese goods, including laptops and mobile phones, will be hit with 15% tariffs on Dec. 15. By December almost every Chinese import will be affected by the tariffs.
This is not the first time that Trump has claimed that the Dow would be 10,000 points higher. He had previously stated that the Dow would be 10,000 points higher if the U.S. Federal Reserve hadn’t raised interest rates last year.