Trump likens tariffs to ‘medicine’ as markets brace for a turbulent week ahead
Good morning! Welcome to the live blog covering U.S. politics. I’m Tom Ambrose and will keep you updated with the latest news in the coming hours.
We begin with President Donald Trump asserting that foreign nations will need to pay “a lot of money” to ease significant tariffs he described as “medicine”, as market indications suggest another week of significant declines may await.
Trump, speaking with reporters aboard Air Force One, expressed he was not worried about market losses that have already erased nearly $6 trillion from U.S. stock values, according to Reuters.
“I don’t want anything to go down. But sometimes, you must take medicine to resolve an issue,” he stated.
He mentioned discussions with leaders from Europe and Asia over the weekend, who are eager to persuade him to reduce tariffs that may reach up to 50 percent, set to come into effect this week.
“They’re ready to negotiate. They want to engage in talks, but those talks require them to pay us a substantial amount yearly,” Trump added.
Trump’s tariff declarations last week sent shockwaves through global economies, prompting countermeasures from China and raising concerns of a potential global trade conflict and recession.
During Sunday morning talk shows, top economic aides to Trump sought to frame the tariffs as a strategic repositioning of the U.S. within the global trade framework. They aimed to downplay the economic repercussions from the recent chaotic rollout, with Wall Street stock futures opening significantly lower on Sunday, indicating ongoing instability.
Treasury Secretary Scott Bessent noted that over 50 countries have begun negotiations with the U.S. since last Wednesday’s announcement.
“He’s established maximum leverage for himself,” Bessent stated on NBC News’ ‘Meet the Press’. However, he did not specify which nations were involved or provide details about the discussions. Managing negotiations with multiple countries simultaneously may present logistical hurdles for the Trump administration and could extend economic uncertainty.
Bessent also mentioned that there was “no reason” to foresee a recession, attributing the stronger-than-expected U.S. job growth last month to the period prior to the tariffs being announced.
Key events
China accuses US of economic bullying
China has accused the US of unilateralism, protectionism, and economic intimidation over tariffs.
Foreign affairs spokesperson Lin Jian remarked to reporters: “Prioritizing the US over international standards typifies unilateralism, protectionism, and economic bullying.”
President Donald Trump announced significant tariffs last week, which prompted swift retaliation from China and other countries, according to AP.
Trump introduced an additional 34% tariff on Chinese goods as part of “Liberation Day”, stacking on top of two prior rounds of 10% tariffs declared in February and March, which he attributed to Beijing’s involvement in the fentanyl crisis.
In retaliation, China has halted imports of sorghum, poultry, and bone meal from various American companies.
The latest counteractions from Beijing include heightened export restrictions on rare earth minerals, essential for a range of technologies, and filing a case at the World Trade Organization.
The EU must respond to US trade tariffs in a calm and measured manner, aiming for negotiations, stated Dutch trade minister Reinette Klever on Monday.
“We must engage with the Americans to explore ways to reduce these tariffs,” Klever mentioned before a meeting of EU trade ministers in Luxembourg.
“We need to maintain a calm approach and respond in ways that de-escalate tensions. The stock markets are indicating the potential fallout of immediate escalation. However, we are prepared to take countermeasures when necessary to bring the Americans to the negotiating table.”
