President Donald Trump stated on Sunday that he will not retreat from his broad tariff measures on imports from most nations until those countries balance their trade relationships with the United States.
He is steadfastly pursuing his agenda to introduce these taxes, leading to volatile reactions in financial markets, sparking concerns about an economic downturn, and disrupting the worldwide trade framework.
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U.S. President Donald Trump at Miami International Airport, Florida on April 3, 2025. Image captured by AFP |
While speaking with journalists onboard Air Force One, Trump stated that he did not wish for global markets to decline; however, he was not particularly worried about the significant drop either. He further commented, “Occasionally, you need to take some medicine to address an issue.”
His remarks were made as international financial markets seemed poised to maintain their steep drops when trading resumed on Monday. This followed efforts by Trump’s advisors to calm market worries, stating that over 50 countries had contacted them expressing interest in initiating talks aimed at reducing the tariffs.
"Many leaders from Europe, Asia, and various parts of the globe have spoken to me,” Trump stated. “They are eager to strike a deal. However, I told them that we won’t run up deficits with their countries. For me, a deficit means losing money. Instead, our aim will be to achieve surpluses, or at minimum break even.”
Starting Wednesday, increased rates will come into effect, marking the dawn of a period marked by economic unpredictability without an apparent conclusion. According to Treasury Secretary Scott Bessent, unjust trading tactics cannot simply be resolved through negotiations lasting mere days or weeks. He emphasized that the U.S. needs to assess what these nations propose and determine if their offers hold credibility.
Trump, who spent the weekend in Florida playing golf, posted online that "WE WILL WIN. HANG TOUGH, it won’t be easy." His Cabinet members and economic advisers were out in force Sunday defending the tariffs and downplaying the consequences for the global economy.
We don't necessarily have to face a recession," Bessent stated. "It’s uncertain how the market will respond over the next few days or weeks." He added, "Our focus is on establishing strong long-term economic foundations for growth and success.
On Sunday night, U.S. stock futures declined due to ongoing tariff concerns affecting the market. Futures for both the Dow Jones Industrial Average and the S&P 500 decreased by approximately 4%, whereas Nasdaq futures plummeted almost 5%. Additionally, Bitcoin, which had remained fairly steady throughout the previous week, saw a drop of around 6% on Sunday.
Trump’s tariff On April 2, blitz carried out a crucial pledge from his campaign by unilaterally reshaping international trade regulations. This step had been years in the planning for Trump, who has consistently criticized overseas trade agreements as detrimental to America. His strategy hinges on the assumption that citizens will accept increased costs for common goods in order to implement his economic plan.
Countries are scrambling to figure out how to respond to the tariffs, with China and others retaliating quickly.
Top White House economic adviser Kevin Hassett acknowledged that other countries are "angry and retaliating," and, he said, "by the way, coming to the table." He cited the Office of the U.S. Trade Representative as reporting that more than 50 nations had reached out to the White House to begin talks.
Adding to the turmoil, the new tariffs are hitting American allies and adversaries alike, including Israel, which is facing a 17% tariff. Israeli Prime Minister Benjamin Netanyahu is set to visit the White House and speak at a press conference with Trump on Monday, with his office saying the tariffs would be a point of discussion with Trump along with the war in Gaza and other issues.
Vietnam, a major manufacturing center for clothing, has also been in touch with the administration about the tariffs. Trump said Vietnam’s leader said in a telephone call that his country "wants to cut their Tariffs down to ZERO if they are able to make an agreement with the U.S." And a key European partner, Italian Premier Giorgia Meloni, said she disagreed with Trump’s move but was "ready to deploy all the tools — negotiating and economic — necessary to support our businesses and our sectors that may be penalized."
Commerce Secretary Howard Lutnick made clear there was no postponing tariffs that are days away.
"The tariffs are coming. Of course they are," he said, adding that Trump needed to reset global trade. But he committed only to having them "definitely" remain "for days and weeks."
In Congress, where Trump’s Republican Party has long championed free trade, the tariff regiment has been met with applause but also significant unease.
Several Republican senators have already signed onto a new bipartisan bill that would require presidents to justify new tariffs to Congress. Lawmakers would then have to approve the tariffs within 60 days, or they would expire. Nebraska GOP Rep. Don Bacon said Sunday that he would introduce a House version of the bill, saying that Congress needs to restores its powers over tariffs.
"We gave some of that power to the executive branch. I think, in hindsight, that was a mistake," said Bacon, adding that getting a measure passed would be challenging unless the financial markets continue to react negatively and other indicators such as inflation and unemployment shift.
Wyoming’s John Barrasso, the No. 2 member of the Senate’s GOP leadership, said Trump is "doing what he has every right to do." But, he acknowledged, "there is concern, and there’s concern across the country. People are watching the markets."
"There’ll be a discussion in the Senate," Barrasso said of the tariffs. "We’ll see which way the discussion goes."
Trump’s government cost-cutting guru, billionaire businessman Elon Musk, had been relatively silent on Trump’s tariffs, but said at a weekend event in Italy that he would like to see the U.S. and Europe move to "a zero-tariff situation." The comment from the Tesla owner who leads Trump’s Department of Government Efficiency drew a rebuke from White House trade adviser Peter Navarro.
"Elon, when he is on his DOGE lane, is great. But we understand what’s going on here. We just have to understand. Elon sells cars," Navarro said. He added: "He’s simply protecting his own interest as any business person would do."
Trump indicated he disagreed with Musk, saying Sunday of the European Union, "They want to talk, but there’s no talk unless they pay us a lot of money on a yearly basis."
Lawrence Summers, an economist who was treasury secretary under Democratic President Bill Clinton, said Trump and his economic team are sending contradictory messages if they say they are interested in reviving manufacturing while still being open to negotiating with trade partners.
If other countries eliminate their tariffs, and the U.S, does, too, he said, "it’s just making a deal, then we don’t raise any revenue nor do we get any businesses to relocate to the United States. If it’s a permanent revenue source and trying to get businesses to relocate to the United States, then we’re going to have these tariffs permanently. So the president can’t have it both ways."
Bessent was on NBC’s "Meet the Press," Hassett and Summers appeared on ABC’s "This Week," Lutnick and Barrasso were on CBS’ "Face the Nation" and Navarro was interviewed on Fox News Channel’s "Sunday Morning Futures."