Stock markets fell after Federal Reserve Chairman Jerome Powell said that the Trump administration’s tariffs would most likely lead to even higher inflation and slower growth.

The administration is implementing major shifts in economic policy, and trade is now at the center of it,” Powell said. “These changes are likely to push us further away from our goals.” He explained that the tariffs announced by Trump turned out to be significantly higher than expected — and the economic fallout will likely be just as steep,

China has shrugged off the latest U.S. tariff hike, dismissing the Trump administration's threats as a "meaningless tariff numbers game." Newsweek reached out to the White House by email with a request for comment.

President Donald Trump said Thursday that the United States was in talks with China on tariffs, adding that he was confident the world's largest economies could make a deal to