WASHINGTON (AP) — Just before the stock market closed on Monday, reporters assembled in the Oval Office for a crucial opportunity to question President Donald Trump regarding the chaos surrounding his tariff initiatives.
Will the new tariffs, set to be implemented on Wednesday, serve as a negotiable leverage to secure favorable trade agreements? Or are they a definitive part of an overarching plan to transform the global economy?
Investors globally were intently listening to Trump’s statements, yet he offered little insight into the situation.
“Both can be accurate,” he stated. “There can be enduring tariffs, and there can also be discussions.”
Containers pile up at Kwai Chung Container terminal in Hong Kong, Tuesday, Apr. 8, 2025. (AP Photo/Chan Long Hei)
The markets fell sharply. Amid a time when foreign leaders and business executives are seeking clarity, mixed messages are emanating from the White House as it attempts to balance conflicting objectives.
Advisers have been somewhat successful in mitigating a prolonged stock selloff by promoting tariffs as the starting point for negotiations, potentially easing concerns among Wall Street and anxious Republicans in Congress. The S&P 500 index rose by 1.5% in trading on Tuesday afternoon, although earlier gains were pared back. However, the president maintains that he could generate hundreds of billions in revenue from his new taxes on foreign imports and has shown no intention of backing away from the agenda he has championed for decades, even prior to his political career.
The ongoing contradiction could undermine confidence in Trump’s leadership both domestically and internationally following his promises of a thriving economy and tax reductions, rather than reduced retirement savings and concerns about a recession. As the new tariffs are about to take effect, a clear resolution for what might be the most significant shift in international trade within a generation is still lacking.
Sen. Thom Tillis, a Republican from North Carolina, urged the White House to “resolve the situation.”
He noted that the “perception of whether there is an end goal is crucial.” Tillis stated that he is “giving the administration the benefit of the doubt” for now. However, he added, “you need to act as swiftly as possible.”
Sen. Elizabeth Warren, a Democrat from Massachusetts, accused Trump of creating economic turmoil through his indecisiveness regarding tariffs.
“Who makes long-term investments based on that?” she questioned. “Who hires and trains workers with the hope that Donald Trump won’t change his mind repeatedly?”
White House Press Secretary Karoline Leavitt stated that Trump met with his team on Tuesday morning and “instructed them to pursue customized trade deals with each and every country looking to engage with this administration.”
Thus far, the administration has not clearly conveyed its objectives for discussions with trade partners, other than suggesting that negotiations could last several months, and that countries may also need to substantially reform their tax systems and regulations to meet Trump’s demands. Officials from Canada and Europe remain uncertain about how to move forward, even as Trump’s administration maintains that as many as 70 nations are eager to begin negotiations.
White House press secretary Karoline Leavitt speaks with reporters in the James Brady Press Briefing Room at the White House, Tuesday, April 8, 2025, in Washington. (AP Photo/Alex Brandon)
Trump maintains that he aims to eliminate trade deficits where the U.S. imports more goods than it exports. On Tuesday morning, Trump announced on Truth Social that he had a conversation with South Korea’s acting president, Han Duck-soo, about their substantial and “unsustainable” surplus.
“We have the potential for an excellent DEAL for both nations,” he declared. “Their top TEAM is on a flight to the U.S., and things are looking promising.”
However, on Monday, when Israeli Prime Minister Benjamin Netanyahu expressed his intent to “balance the trade deficit with the United States,” Trump appeared unimpressed.
When asked if he would delay new tariffs on Israel, the president replied, “maybe not.”
“Don’t forget, we provide a lot of assistance to Israel,” he mentioned, referring to billions in military aid.
Trump has long viewed tariffs as a solution to economic issues, insisting that other countries are exploiting the U.S. This perspective has been a consistent refrain over the years.
Last Thursday, while traveling to Florida on Air Force One, Trump remarked to reporters that “tariffs give us significant power to negotiate.”
On the return flight to Washington on Sunday, Trump deemed the tariffs as essential and stated he was unfazed by the declining stock market, claiming that “sometimes you must take medicine to rectify an issue.”
Peter Navarro, a prominent trade adviser, has also adopted a tough stance.
“This is not a negotiation,” Navarro asserted in the Financial Times. “For the U.S., this is a national emergency precipitated by trade deficits stemming from a rigged system.”
Conversely, other officials like Kevin Hassett, the chief economic adviser at the White House, and Scott Bessent, the Treasury Secretary, claim that numerous countries are ready to negotiate with Trump regarding tariffs.
“April, May, and maybe even June are going to be busy,” Bessent informed Fox News. He indicated that Trump “has positioned himself to maximize negotiating power, and just as he reaches maximum leverage, he’s open to conversations.”
Speaking on Monday at the Hudson Institute, a conservative think tank, Stephen Miran, chairman of Trump’s Council of Economic Advisors, suggested that the mixed messages about the intent behind the tariffs demonstrate a “healthy” internal discussion.
“Conflicting narratives arise because everyone has their perspective,” he noted. “And that’s acceptable. Disagreement can enhance your arguments and prevent groupthink, which I believe is very beneficial.”
Regarding whether any agreements could be finalized before the tariffs take effect, Miran stated, “that decision ultimately lies with the president.”
Michael Strain, an economist at the American Enterprise Institute, a conservative think tank, argued that Trump’s ambitions are fundamentally incompatible.
“These tariffs cannot serve as both a tool to reshape the global trade order and as a means of negotiating reduced trade barriers,” he explained during a panel discussion at the Bipartisan Policy Institute.
Sen. John Kennedy, a Republican from Louisiana, attributed the uncertainty to Trump’s aides, suggesting that some of them “simply enjoy talking.”
“There’s confusion surrounding what the president’s objectives are, and I believe that’s a result of some of his advisers, who offered contradictory statements on television this past weekend,” he stated.
A man stands near an electronic board displaying stock prices at the Indonesia Stock Exchange, in Jakarta, Indonesia, Tuesday, April 8, 2025. (AP Photo/Achmad Ibrahim)
