Trump maintains his stance on tariffs, referring to them as a form of 'medicine', amidst market instability
President Donald Trump has announced sweeping tariffs on imports from most of the world, a move that has sent the stock market reeling and raised fears of a global recession. The tariffs are scheduled to be implemented within days, according to Commerce Secretary Howard Lutnick.
The tariffs are set to be collected beginning Wednesday, ushering in a new era of economic uncertainty. American allies such as Israel, Vietnam, and Italy are among those affected by the tariffs. Stock futures dropped significantly as the tariffs continued to roil the markets.
The tariffs have sent the stock market today reeling and raised fears of a recession. Asian shares nosedived following the announcement, and there is significant unease in Congress about the tariff regiment, particularly among some Republican senators.
White House trade adviser Peter Navarro has criticized Elon Musk for his comments, stating that Musk is merely protecting his own interests as a business person. However, Musk, who serves as Trump's government cost-cutting guru, has expressed a desire for the U.S. and Europe to move towards a zero-tariff situation.
Trump has indicated that he disagrees with Musk's stance on the European Union, saying that they need to pay the U.S. a lot of money on a yearly basis in order to talk. In contrast, Italian Premier Giorgia Meloni has expressed disagreement with the tariffs but is ready to negotiate to support Italian businesses.
Nebraska GOP Rep. Don Bacon has announced plans to introduce a bill that would require presidents to justify new tariffs to Congress and have them approved within 60 days, or else they would expire. Similarly, the bill proposed by Republican senators would restore Congress's powers over tariffs.
Trump has stated that he won't back down on the tariffs unless countries even out their trade with the U.S. Treasury Secretary Scott Bessent said that unfair trade practices are not easy to negotiate away.
Countries are scrambling to figure out how to respond to the tariffs, with China and others retaliating quickly. The countries that have agreed to negotiate tariffs with President Trump include the European Union (EU), India, Brazil, South Korea, Thailand, Cambodia, and Pakistan, with specific agreements or ongoing talks on tariff rates and trade investments.
Gia Zampano in Rome contributed to this report.
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