Former US President Donald Trump has likened his sweeping new tariffs to "medicine" necessary to fix trade imbalances, even as global markets brace for another rough week. Speaking aboard Air Force One, Trump stated that foreign governments would need to pay “a lot of money” annually to avoid the newly announced tariffs, some of which reach up to 50%.
Despite nearly $6 trillion being wiped from US stock values, Trump downplayed concerns, saying, “Sometimes you have to take medicine to fix something.” The tariff hike, which began at 10% over the weekend and will climb to as high as 50% on Wednesday, has already sparked retaliatory measures from countries like China and ignited fears of a global recession.
White House officials, including Treasury Secretary Scott Bessent, insisted that the tariffs were a strategic move to strengthen the US’s position in global trade negotiations. Bessent noted that more than 50 nations have entered talks with the US since the announcement, though he declined to name them.
Economists at JPMorgan have revised their US GDP forecast downward, now expecting a 0.3% decline for the year and a rise in unemployment from 4.2% to 5.3%. Meanwhile, US stock futures opened lower on Sunday, hinting at continued market volatility.
On the international front, leaders from countries including Taiwan, Israel, and Italy have signaled readiness to negotiate, with Taiwan offering zero tariffs and Israel and Italy seeking exemptions from pending hikes. Italian wine producers have already reported business slowdowns due to the uncertainty.
Despite speculations about Trump using tariffs to pressure the Federal Reserve into lowering interest rates, White House adviser Kevin Hassett denied any such strategy. However, Trump’s own social media post hinting at leveraging tariffs to influence rate cuts has fueled debates over the long-term intent behind the policy.
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