Trump stood firm on his tariff policies, likening them to medication, as the stock market shows signs of instability
In a move that has sent financial markets reeling, President Donald Trump has announced sweeping tariffs on imports from most of the world. The decision, set to be enforced starting Wednesday, has upended the global trading system and caused a sharp decline in global financial markets.
The tariffs have been met with disagreement from various quarters. Elon Musk, Trump's government cost-cutting guru, expressed a desire for a zero-tariff situation between the U.S. and Europe, a viewpoint that Trump reportedly disagrees with. Meanwhile, Italian Premier Giorgia Meloni has stated her disagreement with the tariffs but is ready to negotiate to support affected businesses.
Asian shares nosedived as a result, with Tokyo's Nikkei 225 index losing nearly 8% and Chinese markets also tumbling. Global financial markets appear on track to continue these sharp declines once trading resumes on Monday. U.S. stock futures dropped significantly on Sunday night as the tariffs continued to roil the markets.
The tariffs have also affected American allies. Countries such as Israel and Vietnam are facing tariffs and have been in touch with the administration about the matter. More than 50 nations have reached out to the White House to launch negotiations to lift the tariffs.
In Congress, a new bipartisan bill is being proposed to require presidents to justify new tariffs and obtain approval from Congress within 60 days. Nebraska GOP Rep. Don Bacon announced he would introduce a House version of the bill. Wyoming's John Barrasso, a high-ranking member of the Senate's GOP leadership, expressed concern about the tariffs but acknowledged Trump's right to implement them.
The bill aims to restore Congress's powers over tariffs. Economist Lawrence Summers criticized the inconsistency in Trump's economic policies regarding tariffs. White House trade adviser Peter Navarro criticized Musk's comments, suggesting he was only protecting his business interests.
The United States Treasury Secretary, Scott Bessent, stated that unfair trade practices are not easily negotiable. Commerce Secretary Howard Lutnick confirmed that the tariffs will be implemented as planned. However, there are no publicly confirmed reports specifying which countries have contacted the White House to initiate tariff negotiations.
The tariffs are expected to remain in place for days and weeks, according to Lutnick. The extent of their impact on the global economy and financial markets remains to be seen.
Read also:
- Deepwater Horizon Oil Spill: BP Faces Record-Breaking Settlement - Dubbed 'Largest Environmental Fine Ever Imposed'
- Meta Unveils Ray-Ban AR Display Sunglasses; TikTok Agrees to $200 Million Deal
- Historic downtown temples to receive restoration funds totaling over 25 million pesos
- Cars' Environmental Impact Explained
