U.S. President Donald Trump has defended his decision to impose sweeping tariffs, calling them "medicine" necessary to correct global trade imbalances, despite sharp losses in global financial markets.
Speaking aboard Air Force One on 6 April, Trump stated that foreign governments would need to pay "a lot of money" annually to see the tariffs lifted. The measures, including a 10% tariff on imports from numerous countries and additional country-specific rates of up to 50%, began on Saturday. Higher rates are set to take effect from 10 April.
Asian markets opened with steep losses on Monday, while U.S. futures also declined. Economists have warned the tariffs could weaken global demand, lower confidence, and increase recession risk. JPMorgan revised its U.S. GDP forecast, predicting a 0.3% contraction this year, with unemployment expected to rise to 5.3%.
Despite the market turmoil, Trump signalled no intention to reverse course, suggesting negotiations would only begin if other countries made significant financial concessions. 'They want to talk, but there's no talk unless they pay us a lot of money on a yearly basis,' he said.
Several countries are seeking exemptions. Taiwan offered to eliminate tariffs and increase U.S. investment. Israel's Prime Minister Netanyahu plans to discuss reprieve from a 17% tariff during a meeting with Trump. India is in talks and does not intend to retaliate against a 26% tariff. Italy pledged support for affected businesses, including wine exporters.
Top U.S. officials have defended the strategy. Treasury Secretary Scott Bessent claimed over 50 countries have opened talks since the announcement. Commerce Secretary Howard Lutnick said tariffs may remain for "days and weeks", while White House adviser Kevin Hassett dismissed suggestions the move was intended to pressure the Federal Reserve.
Billionaire investor Bill Ackman warned of an "economic nuclear winter" if the tariffs are not halted.
Source: www.reuters.com