President Donald Trump has defended his stance on the tariffs slapped on China, saying Beijing is paying for tax while U.S. consumers are paying nothing.

In a tweet on Saturday morning, Aug. 3, President Trump wrote: “Things are going along very well with China. They are paying us Tens of Billions of Dollars, made possible by their monetary devaluations and pumping in massive amounts of cash to keep their system going.”

Two days earlier, President Trump decided to impose a 10% tariff on the remaining $300 billion in Chinese imports, which takes effect from Sept. 1.

The new tariff was announced after the Trump administration had already placed a 25% tariff on $250 billion of China imports, prompting economists and the media to blame that measure for making U.S. consumers pay the tariffs, not China.

However, President Trump suggested low inflation is a proof that the tariffs are not affecting U.S. consumers.

“So far our consumer is paying nothing—and no inflation. No help from Fed!” added President Trump, who has also frequently cited low consumer price index (CPI) as a reason to urge the Federal Reserve to lower interest rates.

In theory, U.S. import companies often pass the costs of tariffs on to their domestic customers, including manufacturers and consumers, by raising their prices.

But U.S. inflation has remained muted since President Trump slapped two phases of tariffs worth a total of $250 billion since last summer.

The most up to date data from Labor Department shows the broader CPI climbed 1.6% from last year earlier in June, after it rose 1.8% in May and has been still below the Fed’s 2% target for several years.

In addition to defending his tariff actions on China, President Trump said that countries are coming to the United States to ask to negotiate “real trade deals, not the one sided horror show deals made by past administrations,” because “they don’t want to be targeted for tariffs by the U.S.”

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