Trump mentioned he did not need world markets to fall, but in addition that he wasn’t involved concerning the huge sell-off both.
FORT LAUDERDALE, Fla. — President Donald Trump mentioned Sunday that he will not again down on his sweeping tariffs on imports from many of the world until international locations even out their commerce with the U.S., digging in on his plans to implement the taxes which have despatched monetary markets reeling, raised fears of a recession and upended the world buying and selling system.
Talking to reporters aboard Air Pressure One, Trump mentioned he did not need world markets to fall, but in addition that he wasn’t involved concerning the huge sell-off both, including, “typically it’s important to take drugs to repair one thing.”
His feedback got here as world monetary markets appeared on monitor to proceed sharp declines as soon as buying and selling resumes Monday, and after Trump’s aides sought to appease market considerations by saying greater than 50 nations had reached out about launching negotiations to raise the tariffs.
“I spoke to loads of leaders, European, Asian, from all around the world,” Trump mentioned. “They’re dying to make a deal. And I mentioned, we’re not going to have deficits together with your nation. We’re not going to do this, as a result of to me a deficit is a loss. We’re going to have surpluses or at worst, going to be breaking even.”
The upper charges are set to be collected starting Wednesday, ushering in a brand new period of financial uncertainty with no clear finish in sight. Treasury Secretary Scott Bessent mentioned unfair commerce practices usually are not “the sort of factor you’ll be able to negotiate away in days or perhaps weeks.” The USA, he mentioned, should see “what the international locations provide and whether or not it is plausible.”
Trump, who spent the weekend in Florida enjoying golf, posted on-line that “WE WILL WIN. HANG TOUGH, it received’t be straightforward.” His Cupboard members and financial advisers had been out in pressure Sunday defending the tariffs and downplaying the implications for the worldwide economic system.
“There doesn’t need to be a recession. Who is aware of how the market goes to react in a day, in every week?” Bessent mentioned. “What we’re taking a look at is constructing the long-term financial fundamentals for prosperity.”
U.S. inventory futures dropped on Sunday night time because the tariffs continued to roil the markets. S&P 500 futures had been down 2.5% whereas that for the Dow Jones Industrial Common shed 2.1%. Nasdaq futures had been down 3.1%. Even the value of bitcoin, which held comparatively steady final week, fell practically 6% Sunday.
Asian shares, in the meantime, nosedived. Tokyo’s Nikkei 225 index misplaced practically 8% shortly after the market opened. By noon, it was down 6%. A circuit breaker briefly suspended buying and selling of Topix futures after an earlier sharp fall in U.S. futures. Chinese language markets additionally tumbled, with Hong Kong’s Cling Seng dropping 9.4%, whereas the Shanghai Composite index misplaced 6.2%.
Trump’s tariff blitz, introduced April 2, fulfilled a key marketing campaign promise as he acted with out Congress to redraw the foundations of world commerce. It was a transfer many years within the making for Trump, who has lengthy denounced international commerce offers as unfair to the U.S. He’s playing that voters will likely be keen to endure greater costs for on a regular basis gadgets to enact his financial imaginative and prescient.
International locations are scrambling to determine how to reply to the tariffs, with China and others retaliating rapidly.
High White Home financial adviser Kevin Hassett acknowledged that different international locations are “offended and retaliating,” and, he mentioned, “by the best way, coming to the desk.” He cited the Workplace of the U.S. Commerce Consultant as reporting that greater than 50 nations had reached out to the White Home to start talks.
Including to the turmoil, the brand new tariffs are hitting American allies and adversaries alike, together with Israel, which is dealing with a 17% tariff. Israeli Prime Minister Benjamin Netanyahu is about to go to the White Home and communicate at a press convention with Trump on Monday, along with his workplace saying the tariffs could be a degree of debate with Trump together with the warfare in Gaza and different points.
One other American ally, Vietnam, a significant manufacturing middle for clothes, has additionally been in contact with the administration concerning the tariffs. Trump mentioned Vietnam’s chief mentioned in a phone name that his nation “needs to chop their Tariffs all the way down to ZERO if they’re able to make an settlement with the U.S.” And a key European associate, Italian Premier Giorgia Meloni, mentioned she disagreed with Trump’s transfer however was “able to deploy all of the instruments — negotiating and financial — essential to help our companies and our sectors which may be penalized.”
Commerce Secretary Howard Lutnick made clear there was no suspending tariffs which are days away.
“The tariffs are coming. After all they’re,” he mentioned, including that Trump wanted to reset world commerce. However he dedicated solely to having them “positively” stay “for days and weeks.”
In Congress, the place Trump’s Republican Get together has lengthy championed free commerce, the tariff regiment has been met with applause but in addition vital unease.
A number of Republican senators have already signed onto a brand new bipartisan invoice that might require presidents to justify new tariffs to Congress. Lawmakers would then need to approve the tariffs inside 60 days, or they’d expire. Nebraska GOP Rep. Don Bacon mentioned Sunday that he would introduce a Home model of the invoice, saying that Congress must restores its powers over tariffs.
“We gave a few of that energy to the chief department. I feel, in hindsight, that was a mistake,” mentioned Bacon, including that getting a measure handed could be difficult until the monetary markets proceed to react negatively and different indicators akin to inflation and unemployment shift.
Wyoming’s John Barrasso, the No. 2 member of the Senate’s GOP management, mentioned Trump is “doing what he has each proper to do.” However, he acknowledged, “there may be concern, and there’s concern throughout the nation. Individuals are watching the markets.”
“There’ll be a dialogue within the Senate,” Barrasso mentioned of the tariffs. “We’ll see which approach the dialogue goes.”
Trump’s authorities cost-cutting guru, billionaire businessman Elon Musk, had been comparatively silent on Trump’s tariffs, however mentioned at a weekend occasion in Italy that he want to see the U.S. and Europe transfer to “a zero-tariff state of affairs.” The remark from the Tesla proprietor who leads Trump’s Division of Authorities Effectivity drew a rebuke from White Home commerce adviser Peter Navarro.
“Elon, when he’s on his DOGE lane, is nice. However we perceive what is going on on right here. We simply have to grasp. Elon sells automobiles,” Navarro mentioned. He added: “He is merely defending his personal curiosity as any enterprise individual would do.”
Trump indicated he disagreed with Musk, saying Sunday of the European Union, “They wish to speak, however there’s no speak until they pay us some huge cash on a yearly foundation.”
Lawrence Summers, an economist who was treasury secretary beneath Democratic President Invoice Clinton, mentioned Trump and his financial group are sending contradictory messages if they are saying they’re concerned with reviving manufacturing whereas nonetheless being open to negotiating with commerce companions.
If different international locations eradicate their tariffs, and the U.S, does, too, he mentioned, “it’s simply making a deal, then we don’t increase any income nor will we get any companies to relocate to america. If it’s a everlasting income supply and attempting to get companies to relocate to america, then we’re going to have these tariffs completely. So the president can’t have it each methods.”
Bessent was on NBC’s “Meet the Press,” Hassett and Summers appeared on ABC’s “This Week,” Lutnick and Barrasso had been on CBS’ “Face the Nation” and Navarro was interviewed on Fox Information Channel’s “Sunday Morning Futures.”
Gomez Licon reported from Fort Lauderdale, Florida. Related Press author Giada Zampano in Rome contributed to this report.
