Trump Calls Tariffs ‘Medicine’ Despite Market Fallout/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Donald Trump refused to reverse course on sweeping global tariffs, insisting they are necessary despite economic turmoil. Global markets, including U.S. futures and Asian stocks, plunged in response to his hardline trade policy. As backlash mounts from allies and lawmakers, Trump remains steadfast in reshaping global commerce.
Trump Tariffs ‘Medicine’ for Trade Imbalance: Quick Looks
- Trump says he won’t back down on global tariffs.
- Financial markets continue to slide across Asia and U.S. futures.
- Trump calls tariffs “medicine” needed to fix trade problems.
- More than 50 countries reached out to discuss potential deals.
- Asian markets, including Japan and China, dropped sharply Monday.
- Trump vows no trade deficits, demands surpluses or parity.
- U.S. allies, including Israel and Vietnam, respond with concern.
- Lawmakers propose a bill to require Congressional approval on tariffs.
- Elon Musk voices support for zero-tariff policy, drawing pushback.
Trump Calls Tariffs ‘Medicine’ Despite Market Fallout
Deep Look
Trump Doubles Down on Tariffs as Global Markets Plunge
Former President Donald Trump confirmed Sunday he has no plans to pull back from his sweeping tariffs, despite global markets reacting negatively and growing fears of a recession. Speaking aboard Air Force One, Trump defended his trade stance, describing the tariffs as “medicine” required to address decades of what he considers unfair trade practices against the United States.
Trump stated his intent clearly: unless other countries are willing to reduce their trade surpluses with the U.S., tariffs will remain. “We’re not going to have deficits with your country,” Trump said, signaling a more confrontational era in global trade. “To me, a deficit is a loss.”
The tariffs, set to be collected starting Wednesday, are part of Trump’s long-held plan to overhaul trade deals and eliminate what he sees as one-sided arrangements. Despite efforts by his aides to soothe market anxiety, global financial indicators continued to tumble. U.S. stock futures fell sharply Sunday night, with the S&P 500 down 2.5%, Dow futures dropping 2.1%, and Nasdaq futures off by 3.1%.
The impact extended well beyond American borders. Asian stock markets opened to steep losses. Tokyo’s Nikkei 225 dropped nearly 8% at the start of trading, later settling down around 6%. Hong Kong’s Hang Seng plunged 9.4%, while China’s Shanghai Composite lost 6.2%. A trading circuit breaker temporarily halted Topix futures trading due to the sharp selloff.
Bitcoin, a previously stable asset in the ongoing financial uncertainty, also slid nearly 6% Sunday evening.
The administration said over 50 countries had contacted U.S. officials to begin negotiations over the new tariffs. Trump referenced discussions with leaders from Asia and Europe, claiming, “They’re dying to make a deal.” He specifically mentioned Vietnam and Italy, citing a willingness from their leaders to work toward reduced or eliminated tariffs.
Commerce Secretary Howard Lutnick confirmed the tariff collection would begin as scheduled. “The tariffs are coming. Of course they are,” he said, indicating they would remain in place for at least “days and weeks” to start. Treasury Secretary Scott Bessent echoed that sentiment, saying the issues at stake could not be resolved quickly and that the administration would assess offers from other nations on a case-by-case basis.
Though Trump expressed confidence that the tariffs would ultimately benefit the U.S. economy, others warned of short-term consequences. The uncertainty has rattled investors and drawn criticism from business leaders and economists.
Some pushback also came from within Trump’s own camp. Elon Musk, now heading the Department of Government Efficiency, voiced support for eliminating tariffs altogether between the U.S. and Europe. “A zero-tariff situation would be ideal,” Musk said at an event in Italy. White House trade adviser Peter Navarro responded critically, suggesting Musk’s view was influenced by his business interests in the automotive sector.
Congress is also weighing in. Some Republican lawmakers, historically proponents of free trade, have joined Democrats in pushing for legislation that would require presidents to justify and seek Congressional approval for new tariffs. Under the proposed bill, tariffs would expire within 60 days unless ratified by Congress.
Nebraska Republican Rep. Don Bacon is leading the effort in the House. “We gave some of that power to the executive branch. I think, in hindsight, that was a mistake,” he said, noting that public and market reactions could ultimately determine the fate of the proposal.
Senator John Barrasso of Wyoming supported Trump’s legal authority to impose the tariffs but admitted there was broad concern. “There’ll be a discussion in the Senate,” he said. “People are watching the markets.”
Trump’s stance is being challenged not only by lawmakers and international partners but also by economists. Former Treasury Secretary Lawrence Summers said the administration’s goals were contradictory. “If tariffs are a revenue source, they’ll be permanent,” he noted. “If they’re a negotiating tactic, then we don’t benefit unless other countries cut theirs, too. The administration can’t have it both ways.”
Even allies like Israel are impacted. Prime Minister Benjamin Netanyahu, visiting the White House Monday, is expected to raise concerns about the 17% tariffs placed on Israeli goods. Vietnam, another close trading partner, has also initiated discussions with the White House following Trump’s claims that its government is open to removing tariffs entirely in exchange for a deal.
Despite the growing backlash, Trump reiterated his commitment to redrawing the global trade map. In a post online, he urged Americans to “HANG TOUGH,” adding, “WE WILL WIN. It won’t be easy.”
Whether his gamble pays off remains to be seen. With global markets already reacting negatively and more countries lining up to retaliate or negotiate, the coming weeks may define the economic legacy of Trump’s aggressive trade policy.
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