Trump: US Economy Heading in Right Direction, China Will Probably Eat Tariffs

The president discussed the economy and the impact of his recent tariffs on America’s trading partners.

President Donald Trump speaks to reporters in the Oval Office of the White House on Feb. 03, 2025. Anna Moneymaker/Getty Images

President Donald Trump defended his trade policies on April 29 and sought to ease Americans’ concerns about the economy, saying that China “probably will eat those tariffs.”

Trump made the comments in an interview with ABC News anchor Terry Moran when asked if Americans can expect “hard times ahead.”

Trump said he did not believe this to be the case, stating that “great times are ahead” for the U.S. economy and that it is “all heading in the right direction.”

The interview focused significantly on concerns about the overall outlook for the U.S. economy and the impact of the administration’s tariffs, which include a 10 percent universal baseline levy on most U.S. trading partners, currently in effect.​

On April 9, the administration announced a 90-day pause on reciprocal tariffs for all countries except China. Most goods from China are subject to a 145 percent tariff. Some Chinese imports, such as electric vehicles, face combined tariffs of up to 245 percent. This includes a 125 percent reciprocal tariff and a 20 percent tariff to address the fentanyl crisis, according to a White House fact sheet.

Moran asked the president how he would address concerns, adding that some people who voted for him have said, “I didn’t sign up for this.”

Trump said his voters “did sign up for it” and stressed that tariffs had been central to his campaign.

“I said that we’ve been abused by other countries at levels that nobody’s ever seen before,” Trump said. “We were losing $3 billion to $5 billion a day on trade. We were losing a trillion and a half to $2 trillion a year.”

Other nations’ tariffs imposed on imports from the United States were simply “not sustainable,” he said.

“They were taking advantage of us like they’ve never,” Trump stated. “I could’ve left it that way, and at some point, there would’ve been an implosion like nobody’s ever seen.”

When asked whether the tariffs on China would lead to increased prices for U.S. consumers on everything from electronics to clothing, Trump said: “You don’t know that. You don’t know whether or not China’s going to eat it. China probably will eat those tariffs.”

Trump said that America’s high levy effectively prevents China from doing much business with the United States, adding that Beijing was “making from us a trillion dollars a year” and “ripping us off like nobody’s ever ripped us off.”

“They’re not doing that anymore,” he said. “Everything’s going to be just fine. It wouldn’t have been if I didn’t do this. ... I think ultimately, you would’ve had an implosion.”

Trump’s comments come after the Treasury Department reported that the administration’s tariffs had resulted in the government collecting $15.9 billion in fees, marking a 105 percent increase from a year prior.

The biggest increase occurred on April 22, when $11.69 billion was collected.

The gains fell short of claims repeated by Trump in recent weeks, including during an April 14 Oval Office meeting, that the tariffs were generating $3 billion in revenue for the United States every day.

The gains also come as consumer confidence is hovering near five-year lows and business sentiment has plunged amid economic uncertainty.

The Department of Commerce is set to release its initial estimate of first-quarter gross domestic product on April 30, coinciding with Trump’s 100 days in office.

During the ABC News interview, Trump said prices for everything from gasoline and energy to eggs have declined since he took office in January.

“You don’t have the drop in fuel and energy and oil like we did. I took it from maybe $3.20 ... down to a much lower number,” Trump said. “When you have that kind of a drop, you’re not going to have inflation.”

Andrew Moran contributed to this report.