Trump calls his tariffs economic ‘medicine’ after trillions wiped out from U.S. stock market
On Sunday, the president of the United States Donald Trump said that foreign governments should pay “a lot of money” to raise radical rates that characterized as “medicine”, since financial markets have indicated that they could be in store another week of steep losses.
Speaking with journalists aboard the Air Force One, Trump indicated that he was not worried about market losses that have already swept away almost $ 6 trillion of dollars in value by US actions.
“I don’t want anything to go down. But sometimes you have to take medicines to repair something,” he said.
Trump said that during the weekend, he had spoken with leaders from Europe and Asia, who hope to convince him to reduce rates up to 50 % due to having effect this week.
“They are coming to the table. They want to speak, but there are no speeches if they don’t pay us a lot of money on an annual basis,” he said.
Trump’s tariff announcement last week shaken the economies all over the world, triggering retaliation withdrawals from China and unleashing the fears of a global commercial and recession war.
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Sunday morning talk show, the president’s best economic councilors tried to portray rates as an expert repositioning of the United States in the global commercial order.
They also tried to minimize the economic shocks of the tumultuous launch of last week. Wall Street’s future equures opened abruptly on Sunday, in a sign of further turbulence.
The United States Treasury Secretary Scott Besent said that more than 50 nations started negotiations with the United States from the announcement last Wednesday.
“He created the utmost leverage for himself,” said Bessent from NBC Meet the press.
Neither Beesent nor the other officials have appointed the countries or offered details on the interviews. But at the same time negotiating with more governments could represent a logistics challenge for the Trump administration and prolong economic uncertainty.
Beesent said that “there was no reason” to anticipate a recession, citing stronger growth in the work of the United States last month, before the rates were announced.
JPMorgan’s economists now estimate that the rates will lead to the decrease in the gross domestic product of the United States for the entire year of 0.3 percent, from a previous estimate of the growth of 1.3 percent and that the unemployment rate will rise to 5.3 percent compared to the current 4.2 percent.
The republican president spent the weekend in Florida, playing golf and publishing a video of his swing on social media on Sunday.
Some countries seek suspension
The US customs agents began to collect the unilateral rate of 10 % Trump on all imports from many countries on Saturday. Mutual “mutual” tariff rates higher than 11 to 50 % on individual countries should have effect on Wednesday at 12:01 et. Some governments have already reported the desire to commit themselves to the United States to avoid duties.
On Sunday, the president of Taiwan Lai Ching-te offered zero rates as a base for interviews with the United States, committing themselves to removing commercial barriers and affirming that Taiwanesi companies will increase their US investments.
Israeli Prime Minister Benjamin Netanyahu said he would look for a recovery from a 17 % rate on the country’s goods during a planned meeting with Trump on Monday.
An official of the Indian government told Reuters that the country does not plan to take revenge on a 26 % rate and said the interviews were underway with the United States for a possible agreement.
The markets seem tanking further
The set markets for rates face another week of potential turbulence after the worst week for the US stocks from the beginning of the Covid-19 crisis five years ago.
The S&P Composite 1500 index, among the wider measures on the US market, has wipe out almost $ 10 trillions of dollars from mid -February, a significant blow to millions of nesting eggs for the retirement of the Americans.
The president of the United States Donald Trump shows no signs of backlog from its rates even after the Dow Jones has lost 2,200 points – its worst closure since 2020 – while the global markets were also tightened for a second day, raising fears of a prolonged world recession.
The economic councilor of the White House Kevin Hassett denied that the rates made part of a Trump strategy to crash the financial markets as a way to press the Federal Reserve of the United States to reduce interest rates. He said there would be no “political coercion” of the central bank.
On Friday in a social post of truth, Trump shared a video that suggested its rates aimed at hammering the stock market affixed in an attempt to force lower interest rates.
The post on social media has fueled the global debate on the fact that the Trump rates made part of a new permanent tariff regime or simply a negotiating tactic that could lead to rates loose through concessions from other countries.
