Trump\u2019s hardline trade stance rattles allies and global financial markets
\n Washington
\nUS President Donald Trump on Sunday said he will not back down on his sweeping global tariffs, defending the levies as necessary \u201cmedicine\u201d to correct trade imbalances, even as markets around the world reel from the economic uncertainty.
\nSpeaking aboard Air Force One, Trump brushed aside concerns over a potential recession and deepening market turmoil, saying, \u201cSometimes you have to take medicine to fix something.\u201d
\nHis remarks followed a weekend of turmoil in financial markets, with global stocks in freefall and investors fearing a broader economic slowdown. US stock futures dipped again Sunday night, with the S&P 500 down 2.5% and the Nasdaq shedding over 3%.
\nAsian markets plunged at Monday\u2019s open, led by a 9.4% drop in Hong Kong\u2019s Hang Seng Index and a near 8% fall in Japan\u2019s Nikkei 225. The Shanghai Composite Index was down more than 6%.
\nThe tariffs, which take effect this week, impose additional levies on imports from both allies and rivals. Countries such as Israel, Vietnam, and Italy have signalled concern, with leaders expected to press the U.S. for exemptions or negotiations.
\n\u201cI spoke to a lot of leaders… They\u2019re dying to make a deal,\u201d Trump said, adding that the US would no longer tolerate trade deficits.
\nTrump\u2019s economic team appeared on multiple Sunday programmes defending the policy shift. Treasury Secretary Scott Bessent said tariffs were necessary to confront unfair trade practices, while White House adviser Kevin Hassett said over 50 countries had reached out to initiate talks.
\nCommerce Secretary Howard Lutnick confirmed the tariffs would go ahead, calling them a long-overdue correction to the global trade order. \u201cThe tariffs are coming. Of course they are,\u201d he said.
\nThe administration\u2019s stance has drawn bipartisan attention in Congress. While some Republicans back the move, others are pushing legislation to reassert congressional control over trade policy. A new bill would require the White House to seek approval for any new tariffs within 60 days.
\nAmong those calling for oversight is Republican Rep. Don Bacon, who said the shift of trade powers to the executive branch may have been \u201ca mistake.\u201d
\nIn an unexpected note of dissent, Trump\u2019s cost-cutting czar Elon Musk called for a move toward \u201ca zero-tariff situation\u201d between the US and Europe. The comment drew criticism from adviser Peter Navarro, who accused Musk of protecting personal business interests.
\nTrump dismissed the idea of easing tensions without major concessions, particularly from the EU. \u201cThere\u2019s no talk unless they pay us a lot of money on a yearly basis,\u201d he said.
\nAs markets await the tariff implementation on Wednesday, the administration has warned that the economic fallout may be long-term but insists it is a necessary adjustment.
\n\u201cThere doesn\u2019t have to be a recession,\u201d Bessent said. \u201cWhat we are looking at is building the long-term economic fundamentals for prosperity.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Trump\u2019s hardline trade stance rattles allies and global financial markets Washington US President Donald Trump on Sunday said he will not back down on his sweeping global tariffs, defending the levies as necessary \u201cmedicine\u201d to correct trade imbalances, even as markets around the world reel from the economic uncertainty. Speaking aboard Air Force One, Trump […]<\/p>\n","protected":false},"author":2,"featured_media":471180,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-471166","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"yoast_head":"\n