Trump says he's not backing down on tariffs, calls them 'medicine' as markets reel
West Palm Beach, Fla. โ President Donald Trump said Sunday that he won't back down on his sweeping tariffs on imports from most of the world unless countries even out their trade with the U.S., digging in on his plans to implement the taxes that have sent financial markets reeling, raised fears of a recession and upended the global trading system.
Speaking to reporters aboard Air Force One, Trump said he didn't want global markets to fall, but also that he wasn't concerned about the massive sell-off either, adding, "sometimes you have to take medicine to fix something.โ
His comments came as global financial markets appeared on track to continue sharp declines once trading resumes Monday, and after Trump's aides sought to soothe market concerns by saying more than 50 nations had reached out about launching negotiations to lift the tariffs.
โI spoke to a lot of leaders, European, Asian, from all over the world," Trump said. "Theyโre dying to make a deal. And I said, weโre not going to have deficits with your country. Weโre not going to do that, because to me a deficit is a loss. Weโre going to have surpluses or at worst, going to be breaking even.โ
The higher rates are set to be collected beginning Wednesday, ushering in a new era of economic uncertainty with no clear end in sight. Treasury Secretary Scott Bessent said unfair trade practices are not โthe kind of thing you can negotiate away in days or weeks.โ The United States, he said, must see โwhat the countries offer and whether it's believable.โ
Trump, who spent the weekend in Florida playing golf, posted online that โWE WILL WIN. HANG TOUGH, it wonโt be easy.โ His Cabinet members and economic advisers were out in force Sunday defending the tariffs and downplaying the consequences for the global economy.
โThere doesnโt have to be a recession. Who knows how the market is going to react in a day, in a week?" Bessent said. โWhat we are looking at is building the long-term economic fundamentals for prosperity.โ
U.S. stock futures dropped on Sunday evening as the tariffs continued to roil the markets. Dow Jones Industrial Average and S&P 500 futures fell nearly 4% while Nasdaq futures were down nearly 5%. Even the price of bitcoin, which held relatively stable last week, fell nearly 6% Sunday.
Trumpโs tariff blitz, announced April 2, fulfilled a key campaign promise as he acted without Congress to redraw the rules of global trade. It was a move decades in the making for Trump, who has long denounced foreign trade deals as unfair to the U.S. He is gambling that voters will be willing to endure higher prices for everyday items to enact his economic vision.
Countries are scrambling to figure out how to respond to the tariffs, with China and others retaliating quickly.
Top White House economic adviser Kevin Hassett acknowledged that other countries are โangry and retaliating,โ and, he said, โby the way, coming to the table.โ He cited the Office of the U.S. Trade Representative as reporting that more than 50 nations had reached out to the White House to begin talks.
Adding to the turmoil, the new tariffs are hitting American allies and adversaries alike, including Israel, which is facing a 17% tariff. Israeli Prime Minister Benjamin Netanyahu is set to visit the White House and speak at a press conference with Trump on Monday, with his office saying the tariffs would be a point of discussion with Trump along with the war in Gaza and other issues.
Another American ally, Vietnam, a major manufacturing center for clothing, has also been in touch with the administration about the tariffs. Trump said Vietnamโs leader said in a telephone call that his country โwants to cut their Tariffs down to ZERO if they are able to make an agreement with the U.S.โ And a key European partner, Italian Premier Giorgia Meloni, said she disagreed with Trumpโs move but was โready to deploy all the tools โ negotiating and economic โ necessary to support our businesses and our sectors that may be penalized."
Commerce Secretary Howard Lutnick made clear there was no postponing tariffs that are days away.
โThe tariffs are coming. Of course they are,โ he said, adding that Trump needed to reset global trade. But he committed only to having them โdefinitelyโ remain โfor days and weeks.โ
In Congress, where Trumpโs Republican Party has long championed free trade, the tariff regiment has been met with applause but also significant unease.
Several Republican senators have already signed onto a new bipartisan bill that would require presidents to justify new tariffs to Congress. Lawmakers would then have to approve the tariffs within 60 days, or they would expire. Nebraska GOP Rep. Don Bacon said Sunday that he would introduce a House version of the bill, saying that Congress needs to restores its powers over tariffs.
โWe gave some of that power to the executive branch. I think, in hindsight, that was a mistake,โ said Bacon, adding that getting a measure passed would be challenging unless the financial markets continue to react negatively and other indicators such as inflation and unemployment shift.
Wyoming's John Barrasso, the No. 2 member of the Senate's GOP leadership, said Trump is โdoing what he has every right to do.โ But, he acknowledged, โthere is concern, and thereโs concern across the country. People are watching the markets.โ
โThereโll be a discussion in the Senate,โ Barrasso said of the tariffs. โWeโll see which way the discussion goes.โ
Trump's government cost-cutting guru, billionaire businessman Elon Musk, had been relatively silent on Trumpโs tariffs, but said at a weekend event in Italy that he would like to see the U.S. and Europe move to "a zero-tariff situation.โ The comment from the Tesla owner who leads Trump's Department of Government Efficiency drew a rebuke from White House trade adviser Peter Navarro.
โElon, when he is on his DOGE lane, is great. But we understand what's going on here. We just have to understand. Elon sells cars,โ Navarro said. He added: โHe's simply protecting his own interest as any business person would do.โ
Trump indicated he disagreed with Musk, saying Sunday of the European Union, โThey want to talk, but thereโs no talk unless they pay us a lot of money on a yearly basis.โ
Lawrence Summers, an economist who was treasury secretary under Democratic President Bill Clinton, said Trump and his economic team are sending contradictory messages if they say they are interested in reviving manufacturing while still being open to negotiating with trade partners.
If other countries eliminate their tariffs, and the U.S, does, too, he said, "itโs just making a deal, then we donโt raise any revenue nor do we get any businesses to relocate to the United States. If itโs a permanent revenue source and trying to get businesses to relocate to the United States, then weโre going to have these tariffs permanently. So the president canโt have it both ways.โ
Bessent was on NBC's โMeet the Press,โ Hassett and Summers appeared on ABC's โThis Week,โ Lutnick and Barrasso were on CBS' โFace the Nationโ and Navarro was interviewed on Fox News Channel's โSunday Morning Futures.โ
Gomez Licon reported from Fort Lauderdale, Florida. Associated Press writer Giada Zampano in Rome contributed to this report.
Want to comment on this story? Become a subscriber today. Click here.
This article originally appeared on Associated Press: Trump says he's not backing down on tariffs, calls them 'medicine' as markets reel
Trump says he's not backing down on tariffs, calls them 'medicine' as markets reel #Trump #Tariffs #TradeWar