US President Donald Trump on Thursday (Apr 10) admitted during a Cabinet meeting that his tariff policies would have a “transition cost” amid plummeting global markets.

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“A big day yesterday. There will always be transition difficulty – but in history, it was the biggest day in history, the markets. So we’re very, very happy with the way the country is running. We’re trying to get the world to treat us fairly,” the president said.

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“We think we’re in very good shape. 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.” Trump said. “We’re doing again what we should have done many years ago.”

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Trump praised his Cabinet, saying they have done an “incredible job” amid the intensifying trade war with China.

Also read | Will Trump stop here? US raises tariffs on China to 145%, targets fentanyl-related imports

“Everyone at this table is doing an incredible job, by the way, I have to say. Incredible. And the relationships are – it’s like they’re friends, they’re really. The relationships are very strong, really good, really strong. And these meetings are very good,” Trump said.

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US-China tariff war

Amid the rising tensions between the two biggest economies in the world, the US has raised tariffs on China to a total of 145 per cent on Thursday (Apr 10). Earlier, Trump had increased the levies to 125 per cent after Beijing refused to back down against his threats and “blackmail”.

Also read | Who is Stephen Miran, Trump’s key economic advisor behind US tariff policies?

China had raised its retaliatory levies to 84 per cent after the US imposed a 104 per cent tariff on Chinese goods on Tuesday (Apr 8).

Meanwhile, the European Union has announced that it has halted its plan to adopt countermeasures against the US for 90 days after Trump's U-turn on the matter.

Also read | Europe halts countermeasures plans against US for 90 days after Trump's tariff U-turn

The US president announced a “90-day pause” and a “substantially lowered reciprocal tariff” for over 75 nations that have sought negotiations with the Trump administration following the reciprocal tariffs imposed on April 2.

(With inputs from agencies)