President Donald Trump and his advisors remain firm on implementing widespread import tariffs despite calls from various quarters to reconsider in order to avoid market instability and a potential trade war.
In multiple TV interviews, U.S. Treasury Secretary Scott Bessent downplayed the recent stock market decline, while Commerce Secretary Howard Lutnick asserted that reciprocal tariffs will be enforced as planned. Bessent said there is no reason to believe the current volatility will lead to a recession, calling it “a coordination process.” Meanwhile, top economic advisor Kevin Hassett stated that over 50 countries have reached out to discuss new trade agreements with Trump.
Last Friday, all three major U.S. stock indexes dropped over 5%, with the S&P 500 falling nearly 6% — marking the worst week for the market since 2020. This downward trend is expected to continue, as Saudi Arabia’s stock exchange — which operates on Sundays — also saw a 7% drop, the biggest single-day loss since the pandemic.
U.S. banking giant JPMorgan has predicted a 60% chance of recession both in the U.S. and globally following Trump’s tariff announcement.
Speaking to reporters aboard Air Force One on Sunday evening, Trump claimed that European and Asian nations are “desperate to make a deal.” When questioned about the potential impact of rising product prices and economic downturn on American consumers, he responded sharply, saying, “That’s a very stupid question. I don’t want things to go badly, but sometimes you have to take medicine to fix something.”
Commerce Secretary Lutnick told CBS News that the newly enforced 10% baseline tariff on all imports will remain, and higher reciprocal tariffs are still in progress. Starting Wednesday, April 9, higher tariffs will be imposed on nearly 60 countries. Defending the tariff on two small penguin-inhabited Antarctic islands, Lutnick said it was meant to close “loopholes” used by countries like China for indirect exports.
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In an interview with NBC’s “Meet the Press,” Secretary Bessent argued that Trump has placed himself in the “most advantageous position,” claiming that more than 50 countries have contacted the administration regarding reducing trade barriers, tariffs, and currency manipulation. However, neither Bessent nor Hassett specified which countries have reached out.
Indonesia and Taiwan have stated they won’t retaliate with counter-tariffs despite the U.S. imposing a 32% tariff on imports from those countries.
According to a letter cited by AFP and The New York Times, Vietnam’s leader To Lam has requested that a planned 46% tariff on Vietnamese exports be delayed by at least 45 days.
On the other hand, China has announced it will impose a 34% tariff on all U.S. imports starting Thursday, April 10.
U.K. Prime Minister Keir Starmer warned on Saturday that “the world we knew has changed,” but reiterated Britain’s commitment to pursuing a trade deal with the U.S. to avoid some tariffs.