Trump Stands Firm on Tariffs Amid Economic Uncertainty

WEST PALM BEACH, Fla. (AP) — President Donald Trump affirmed on Sunday that he will not retract his extensive tariffs on imports unless global trading partners equalize their trade with the United States. His firm stance comes amidst financial market volatility that has heightened concerns about a potential recession and disrupted the international trading landscape.

Speaking to reporters aboard Air Force One, Trump expressed that while he does not desire a downturn in global markets, he remains unfazed by the ongoing market sell-off. He asserted, “Sometimes you have to take medicine to fix something,” indicating his belief in the necessity of the tariffs despite their immediate impact.

Markets around the world are set for further declines on Monday as the impending tariffs are scheduled to be implemented beginning Wednesday, introducing a challenging economic climate without a clearly defined resolution. Treasury Secretary Scott Bessent highlighted that unfair trade practices cannot be quickly resolved, stating, “The kind of thing you can negotiate away in days or weeks is not possible.”

Trump has indicated that many world leaders are eager to negotiate better terms, saying, “They’re dying to make a deal,” but he insists, “We’re not going to have deficits with your country.” The White House has noted that over 50 countries have initiated discussions about renegotiating trade terms.

As U.S. stock futures took a blow on Sunday night, the S&P 500 futures dropped by 2.5%, and the Dow Jones futures fell by 2.1%. Nasdaq futures saw a decrease of 3.1%. Bitcoin, which remained stable last week, plunged nearly 6% Sunday, reflecting broader market concerns.

In Asia, equities suffered substantial losses, with Tokyo’s Nikkei 225 index plummeting nearly 8% soon after the market opened, while Hong Kong’s Hang Seng index fell by 9.4% and the Shanghai Composite index decreased by 6.2%. This stark reaction underscores the multifaceted impact of Trump’s tariff actions on global finance.

The tariffs, initially announced on April 2, fulfill a significant campaign promise for Trump, who has long criticized international trade agreements as detrimental to the U.S. economy. He is counting on voters to accept higher prices for consumer goods as part of his broader economic strategy.

In light of these developments, countries like China and Vietnam are responding to the tariffs with their respective measures. Vietnamese leadership expressed a desire to reduce tariffs to zero under favorable agreements, while Israeli Prime Minister Benjamin Netanyahu plans to address the issue during his visit to the White House on Monday.

Adding to the complex dynamics, U.S. Commerce Secretary Howard Lutnick has confirmed that the tariffs, affecting both allies and adversaries, will be enforced. “The tariffs are coming. Of course they are,” he stated, emphasizing the need for a recalibration of global trade.

Political reactions within Congress are mixed. While Trump’s Republican support base has generally rallied around the tariffs, there is evident concern among some lawmakers regarding the potential economic ramifications. A bipartisan proposal has been introduced requiring presidents to justify new tariffs, with provisions for Congress to re-evaluate them within 60 days.

Republican Senator John Barrasso recognized Trump’s right to impose tariffs but acknowledged general unease among constituents regarding market conditions, stating, “People are watching the markets.”

Elon Musk, a significant figure in the technology sector, has previously been restrained on Trump’s tariffs but recently expressed a preference for a zero-tariff scenario between the U.S. and Europe. White House trade adviser Peter Navarro critiqued Musk’s suggestion, indicating inherent self-interest in business decisions.

Economist Lawrence Summers, who served under President Bill Clinton, warned that the contradicting messages from Trump’s economic team about reviving manufacturing while negotiating tariff reductions could lead to incongruities in policy outcomes. He noted that without permanent revenue generation, the tariffs risk becoming a permanent fixture.

The broad discourse surrounding the tariffs and their implications for the U.S. economy continues, with numerous officials from both sides of the aisle engaging in discussions on various platforms.