US President Donald Trump has insisted that new global tariffs are essential for long-term economic balance, even as stock markets slide and global leaders rush to contain the fallout.
Speaking to reporters aboard Air Force One on Sunday, Trump dismissed growing concerns over a global recession triggered by his trade moves. “Sometimes you have to take medicine to fix something,” he said. “We have been treated so badly by other countries.”
His remarks came as financial markets across the world reacted sharply. US stock futures nosedived Sunday evening, with the Dow and S&P 500 futures both falling nearly 4 per cent. Nasdaq futures dropped by almost 5 per cent, and Bitcoin slid around 6 per cent. Asian markets also recorded heavy losses on Monday morning.
Trump was blunt when pressed about the risks. When a reporter asked whether there was a point at which he would reconsider due to market pain, he shot back: “I think your question is so stupid.”
Tariffs seen as leverage, not a retreat
Trump's decision to impose tariffs of 10 per cent on all imports took effect Saturday. From Wednesday, higher “reciprocal” rates ranging from 11 to 50 per cent will hit goods from selected countries.
Despite the steep price tag for global businesses and rising fears of inflation, Trump stood firm. “They’re dying to make a deal,” he said, referring to leaders in Europe and Asia. “There’s no talk unless they pay us a lot of money on a yearly basis.”
According to US Treasury Secretary Scott Bessent, over 50 nations have reached out since the announcement to discuss possible deals. “He’s created maximum leverage for himself,” Bessent told NBC’s Meet the Press.
Commerce Secretary Howard Lutnick said the tariffs would remain in place “for days and weeks,” calling them part of a strategy to correct long-standing imbalances in trade relationships.
Fears of economic fallout rise
Major investment banks are already revising forecasts. Economists at JPMorgan now expect US GDP to decline by 0.3 per cent for the year — a sharp fall from their earlier estimate of 1.3 per cent growth. The unemployment rate is also projected to climb to 5.3 per cent from 4.2 per cent.
Billionaire investor Bill Ackman, who had previously supported Trump, expressed alarm at the economic risks. “He is losing the confidence of business leaders,” Ackman warned, calling the current course “an economic nuclear winter.”
Meanwhile, White House economic adviser Kevin Hassett tried to ease investor fears. He said there was no attempt to influence the US Federal Reserve and dismissed talk of using the tariffs to force lower interest rates. “There will be no political coercion,” Hassett said.
Global stock markets are in freefall after US President Donald Trump’s sweeping tariffs sparked a wave of retaliation and investor panic. Asian indices crashed sharply, following Wall Street’s steepest drop since the pandemic.
Asian stock markets plunged on Monday in a wave of selling triggered by escalating global trade tensions. The sell-off followed the worst day on Wall Street since the early months of the Covid-19 pandemic.
Tokyo’s Nikkei 225 dropped 7.1 per cent in early trading after briefly falling nearly 8 per cent. Taiwan’s benchmark index fell close to 10 per cent. South Korea’s Kospi declined by 5.5 per cent, and Australia’s ASX 200 tumbled 6.3 per cent — hitting its lowest level in nearly 15 months. Singapore’s market slid by 8.5 per cent, signalling widespread panic across the region.
The dramatic losses came on the heels of sharp falls in US markets. On Friday, the S&P 500 dropped 6 per cent. The Dow Jones Industrial Average slid by 5.5 per cent, and the Nasdaq fell 5.8 per cent. It marked Wall Street’s steepest one-day fall since the Covid-19 market shock in 2020.
Market analysts estimate that more than $9 trillion has been wiped off global stocks in just 48 hours. The scale of the collapse has drawn comparisons to the 2008 global financial crisis, when markets similarly unravelled at pace.
Adding to the sense of crisis, China announced a 34 per cent tariff on all imports from the United States, effective 10 April. The move is a direct response to President Trump’s sweeping new duties, and it has reignited fears of a prolonged trade war between the world’s two largest economies.
“Investor confidence has simply evaporated,” said a senior equities strategist in Singapore. “There’s a sense this could spiral into something deeper and more dangerous.”
The uncertainty is also reshaping commodity and currency markets. US crude oil dipped below $60 a barrel for the first time since April 2021, reflecting fears of slowing demand. Meanwhile, the dollar weakened to 145.98 yen, as investors moved money into traditional safe havens.
Allies seek exemptions, weigh response
Several countries have already begun negotiations or offered concessions in an attempt to avoid the tariffs.
Taiwanese President Lai Ching-te proposed zero tariffs and a removal of trade barriers as a starting point for talks. “Taiwanese companies will raise their US investments,” he said on Sunday.
Israeli Prime Minister Benjamin Netanyahu is expected to request an exemption from a 17 per cent duty on Israeli goods during a meeting with Trump on Monday.
India, which faces a 26 per cent tariff, does not currently plan to retaliate. A government official told Reuters that talks with the US were ongoing to secure a possible agreement.
In Europe, Italian Prime Minister Giorgia Meloni pledged to protect Italian businesses from a 20 per cent tariff. The concern is already being felt on the ground — wine producers and US importers at a wine fair in Verona said orders were slowing and feared long-term damage.
As reported by AP, another American ally, Vietnam, a major manufacturing center for clothing, has also been in touch with the administration about the tariffs. Trump said Vietnam's leader said in a telephone call that his country "wants to cut their Tariffs down to ZERO if they are able to make an agreement with the U.S."
Markets brace for more volatility
Despite signs of recession risk and global unease, Trump remains unmoved. He spent the weekend golfing in Florida while his team fanned out across television networks to defend the tariffs.
“There doesn’t have to be a recession,” said Treasury Secretary Bessent. “What we are looking at is building the long-term economic fundamentals for prosperity.”
Trump took to social media Sunday night to rally support, posting: “WE WILL WIN. HANG TOUGH, it won’t be easy.”
Speaking to reporters aboard Air Force One on Sunday, Trump dismissed growing concerns over a global recession triggered by his trade moves. “Sometimes you have to take medicine to fix something,” he said. “We have been treated so badly by other countries.”
His remarks came as financial markets across the world reacted sharply. US stock futures nosedived Sunday evening, with the Dow and S&P 500 futures both falling nearly 4 per cent. Nasdaq futures dropped by almost 5 per cent, and Bitcoin slid around 6 per cent. Asian markets also recorded heavy losses on Monday morning.
Trump was blunt when pressed about the risks. When a reporter asked whether there was a point at which he would reconsider due to market pain, he shot back: “I think your question is so stupid.”
Reporter: "Is there pain in the market at some point you're unwilling to tolerate?"
— unusual_whales (@unusual_whales) April 7, 2025
Trump: : "I think your question is so stupid. I don't want anything to go down, but sometimes you have to take medicine to fix something — and we have been treated so badly by other countries." pic.twitter.com/WVU9V5q4Nz
Tariffs seen as leverage, not a retreat
Trump's decision to impose tariffs of 10 per cent on all imports took effect Saturday. From Wednesday, higher “reciprocal” rates ranging from 11 to 50 per cent will hit goods from selected countries.
Despite the steep price tag for global businesses and rising fears of inflation, Trump stood firm. “They’re dying to make a deal,” he said, referring to leaders in Europe and Asia. “There’s no talk unless they pay us a lot of money on a yearly basis.”
According to US Treasury Secretary Scott Bessent, over 50 nations have reached out since the announcement to discuss possible deals. “He’s created maximum leverage for himself,” Bessent told NBC’s Meet the Press.
Commerce Secretary Howard Lutnick said the tariffs would remain in place “for days and weeks,” calling them part of a strategy to correct long-standing imbalances in trade relationships.
Fears of economic fallout rise
Major investment banks are already revising forecasts. Economists at JPMorgan now expect US GDP to decline by 0.3 per cent for the year — a sharp fall from their earlier estimate of 1.3 per cent growth. The unemployment rate is also projected to climb to 5.3 per cent from 4.2 per cent.
Billionaire investor Bill Ackman, who had previously supported Trump, expressed alarm at the economic risks. “He is losing the confidence of business leaders,” Ackman warned, calling the current course “an economic nuclear winter.”
Meanwhile, White House economic adviser Kevin Hassett tried to ease investor fears. He said there was no attempt to influence the US Federal Reserve and dismissed talk of using the tariffs to force lower interest rates. “There will be no political coercion,” Hassett said.
Global stock markets are in freefall after US President Donald Trump’s sweeping tariffs sparked a wave of retaliation and investor panic. Asian indices crashed sharply, following Wall Street’s steepest drop since the pandemic.
Asian stock markets plunged on Monday in a wave of selling triggered by escalating global trade tensions. The sell-off followed the worst day on Wall Street since the early months of the Covid-19 pandemic.
Tokyo’s Nikkei 225 dropped 7.1 per cent in early trading after briefly falling nearly 8 per cent. Taiwan’s benchmark index fell close to 10 per cent. South Korea’s Kospi declined by 5.5 per cent, and Australia’s ASX 200 tumbled 6.3 per cent — hitting its lowest level in nearly 15 months. Singapore’s market slid by 8.5 per cent, signalling widespread panic across the region.
The dramatic losses came on the heels of sharp falls in US markets. On Friday, the S&P 500 dropped 6 per cent. The Dow Jones Industrial Average slid by 5.5 per cent, and the Nasdaq fell 5.8 per cent. It marked Wall Street’s steepest one-day fall since the Covid-19 market shock in 2020.
Market analysts estimate that more than $9 trillion has been wiped off global stocks in just 48 hours. The scale of the collapse has drawn comparisons to the 2008 global financial crisis, when markets similarly unravelled at pace.
Adding to the sense of crisis, China announced a 34 per cent tariff on all imports from the United States, effective 10 April. The move is a direct response to President Trump’s sweeping new duties, and it has reignited fears of a prolonged trade war between the world’s two largest economies.
“Investor confidence has simply evaporated,” said a senior equities strategist in Singapore. “There’s a sense this could spiral into something deeper and more dangerous.”
The uncertainty is also reshaping commodity and currency markets. US crude oil dipped below $60 a barrel for the first time since April 2021, reflecting fears of slowing demand. Meanwhile, the dollar weakened to 145.98 yen, as investors moved money into traditional safe havens.
Allies seek exemptions, weigh response
Several countries have already begun negotiations or offered concessions in an attempt to avoid the tariffs.
Taiwanese President Lai Ching-te proposed zero tariffs and a removal of trade barriers as a starting point for talks. “Taiwanese companies will raise their US investments,” he said on Sunday.
Israeli Prime Minister Benjamin Netanyahu is expected to request an exemption from a 17 per cent duty on Israeli goods during a meeting with Trump on Monday.
India, which faces a 26 per cent tariff, does not currently plan to retaliate. A government official told Reuters that talks with the US were ongoing to secure a possible agreement.
In Europe, Italian Prime Minister Giorgia Meloni pledged to protect Italian businesses from a 20 per cent tariff. The concern is already being felt on the ground — wine producers and US importers at a wine fair in Verona said orders were slowing and feared long-term damage.
As reported by AP, another American ally, Vietnam, a major manufacturing center for clothing, has also been in touch with the administration about the tariffs. Trump said Vietnam's leader said in a telephone call that his country "wants to cut their Tariffs down to ZERO if they are able to make an agreement with the U.S."
Markets brace for more volatility
Despite signs of recession risk and global unease, Trump remains unmoved. He spent the weekend golfing in Florida while his team fanned out across television networks to defend the tariffs.
“There doesn’t have to be a recession,” said Treasury Secretary Bessent. “What we are looking at is building the long-term economic fundamentals for prosperity.”
Trump took to social media Sunday night to rally support, posting: “WE WILL WIN. HANG TOUGH, it won’t be easy.”
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