Watch: Trump misspeaks and calls toy firm Mattel a country

The US president says tariffs are "the most misunderstood thing" in business and threatens more action.

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The US president misspoke when saying tariffs are "misunderstood" in business. He cited Mattel, which is famous for making Barbie dolls, as an example of a country thinking about counter-tariffs.

His comments came as the UK and US agreed a tariff deal on some goods traded between the two countries.

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Watch: Trump says US kids might have 'two dolls instead of 30' due to tariffsThe US president was addressing possible shortages due to tariffs on China during a cabinet meeting on Wednesday.