Trump likens tariffs to ‘medicine’ amid turmoil in Asian markets
U.S. President Donald Trump announced on Sunday that foreign governments would need to pay “a lot of money” to have sweeping tariffs lifted, which he described as “medicine.” This statement has led to increased turmoil in global financial markets. During a press briefing on Air Force One, Trump expressed a lack of concern regarding the significant losses that have resulted in the erosion of trillions of dollars in global share market value. “I aim to ensure that no issues arise.” “However, there are instances when medication is necessary to address an issue,” he remarked upon his return from a weekend of golfing in Florida.
Former President Trump reported that he engaged in discussions with leaders from Europe and Asia over the weekend. These leaders are seeking to persuade him to reduce tariffs that are set to reach as high as 50% this week. “They are engaging in discussions.” “They express a desire to engage in discussions, but those conversations will only occur if they are willing to compensate us significantly on an annual basis,” Trump stated.
Asian stocks experienced significant declines in early trading on Monday, while U.S. stock market futures opened with notable losses. Investors are increasingly worried that the tariffs implemented by Trump may result in elevated prices, diminished demand, reduced confidence, and the possibility of a global recession. Last week’s announcement of tariffs by Trump sent shockwaves through global economies, prompting retaliatory measures from China and raising concerns about the potential for a worldwide trade conflict and economic downturn.
Investors and political leaders are grappling with the uncertainty surrounding the permanence of Trump’s tariffs, questioning whether they represent a lasting shift in policy or merely a strategic maneuver aimed at securing concessions from other nations.
During the Sunday morning talk shows, key economic advisers to Trump aimed to frame the tariffs as a strategic realignment of the United States within the global trade landscape. Treasury Secretary Scott Bessent reported that over 50 countries have initiated negotiations with the United States following last Wednesday’s announcement. “He has positioned himself to achieve optimal leverage,” Bessent stated during an appearance on NBC News’ ‘Meet the Press’ program.
Commerce Secretary Howard Lutnick stated on CBS News’ ‘Face the Nation’ that the tariffs will remain in effect “for days and weeks.” In a recent statement, White House economic adviser Kevin Hassett addressed worries regarding the tariffs, clarifying that they are not intended to influence the U.S. Federal Reserve into reducing interest rates. He emphasized that there would be no “political coercion” exerted on the central bank.
JPMorgan economists have revised their projections, indicating that the tariffs are expected to lead to a 0.3% decline in full-year U.S. gross domestic product, a significant shift from their previous forecast of 1.3% growth. Additionally, they anticipate an increase in the unemployment rate, which is projected to rise to 5.3% from the current rate of 4.2%.
Billionaire fund manager Bill Ackman, a supporter of Trump’s presidential campaign, expressed concerns that Trump is losing the confidence of business leaders. He cautioned that without a pause in his approach, the nation could face a “economic nuclear winter.”
U.S. customs agents initiated the collection of a unilateral 10% tariff imposed by Trump on a wide range of imports from various countries this past Saturday. Effective Wednesday at 12:01 a.m. EDT, new reciprocal tariff rates ranging from 11% to 50% on specific countries will be implemented.
Several governments have indicated their readiness to collaborate with the U.S. in order to circumvent the imposition of duties. Taiwan’s President Lai Ching-te announced on Sunday a proposal for zero tariffs as a foundation for negotiations with the United States. He committed to dismantling trade barriers and indicated that Taiwanese firms are poised to increase their investments in the U.S. market. Israeli Prime Minister Benjamin Netanyahu announced his intention to request a suspension of the 17% tariff on Israeli goods in an upcoming meeting with President Trump scheduled for Monday. A government official from India informed Reuters that the nation does not intend to respond to the 26% tariff and indicated that discussions are ongoing with the U.S. regarding a potential agreement. In Italy, Prime Minister Giorgia Meloni, known for her alignment with Trump, announced on Sunday her commitment to protect businesses adversely affected by a proposed 20% tariff on goods imported from the European Union.
