Image credit: REUTERS
President Donald Trump has defended his tough new tariffs, saying they are needed to fix the U.S. economy. Speaking to reporters on his plane, he said, “Sometimes you have to take medicine to fix something.” He believes the move will bring back jobs and investment, making the country “wealthy like never before.”
But the decision has caused a big reaction worldwide. On Monday, Asian stock markets saw heavy losses. Japan’s main index fell 6.3%. Hong Kong’s market dropped nearly 10%. In the U.S., all major stock indexes fell sharply on Friday. The S&P 500 had its worst week since 2020, falling almost 6%.
Saudi Arabia’s market also took a hit. It dropped nearly 7%, the biggest daily loss since the pandemic. Some experts now fear a global recession. One major U.S. bank said there’s a 60% chance of it happening.
Still, top officials in Trump’s team say everything is under control. The Treasury Secretary said there’s no reason to expect a recession. He called the market reaction an “adjustment process.” He added that more than 50 countries have come forward, hoping to make trade deals with the U.S. to avoid higher tariffs.
The Commerce Secretary confirmed the 10% base tariff on all imports is staying. He also said more tariffs are coming soon. About 60 countries labeled as “worst offenders” will face even higher duties starting Wednesday, April 9.
Some countries are asking for more time. Vietnam’s leader has requested a 45-day delay on a 46% tariff. But others are not backing down. China announced it will hit all U.S. imports with a 34% tariff starting Thursday, April 10. Indonesia and Taiwan have said they won’t respond with tariffs of their own.
When asked about how this might hurt American consumers, Trump grew frustrated. “I don’t want anything to go down,” he said. “But sometimes you have to take medicine to fix something.”
Meanwhile, other world leaders are reacting. The U.K. Prime Minister said the world has changed, and his team will keep trying to strike a deal with the U.S. to reduce the impact of the tariffs. He and Canada’s Prime Minister agreed that a full-blown trade war helps no one.
Israel’s Prime Minister is set to meet with Trump in Washington. He said he’ll be the first world leader to meet him since the new tariffs were announced. He called the meeting proof of their strong personal and national ties.
Back in the U.S., protests took place across many cities over the weekend. Huge crowds marched in Boston, Chicago, New York, Los Angeles, and Washington. People expressed anger over Trump’s actions, including the new tariffs.
Despite the backlash, Trump shows no signs of changing course. He believes the short-term pain will lead to long-term gain for the country.
