Trump stands firm on tariffs, referring to them as a form of 'medication' amidst volatile market conditions
In a bold move, President Donald Trump announced sweeping tariffs on imports from most of the world, causing significant unease in Congress and sending financial markets reeling. The tariffs, scheduled to start on a specified date, have raised fears of a recession and upended the global trading system.
Republicans in Congress, particularly, have expressed concern. Wyoming's John Barrasso, a high-ranking member of the Senate's GOP leadership, voiced his apprehensions about the tariffs but acknowledged Trump's right to implement them. Nebraska GOP Rep. Don Bacon plans to introduce a House version of a bill aiming to restore Congress's powers over tariffs. Several Republican senators have also signed onto a new bipartisan bill that requires presidents to justify new tariffs to Congress and get approval within 60 days.
The tariffs have not been met with unanimous approval within the administration either. Treasury Secretary Scott Bessent stated that unfair trade practices are not "the kind of thing you can negotiate away in days or weeks." White House trade adviser Peter Navarro rebuked Elon Musk, Trump's government cost-cutting guru, stating that he is protecting his own interests as a businessperson. Musk, however, has expressed a desire for a zero-tariff situation between the U.S. and Europe.
The European Union's leading representatives, including the European Commission, have responded to the US import tariffs by seeking negotiated solutions while preparing possible retaliatory measures. They initially suspended planned counter-tariffs but remained ready to impose additional countermeasures on imports worth up to 72 billion euros. Simultaneously, they are pursuing dialogue to resolve the trade conflict escalating in 2025, when Trump raised EU import tariffs up to 50% on certain goods.
Countries are scrambling to figure out how to respond to the tariffs. Asian shares nosedived in response, with Tokyo's Nikkei 225 index losing nearly 8% and China's markets also tumbling. Italian Premier Giorgia Meloni has disagreed with Trump's move but is "ready to deploy all the tools - negotiating and economic - necessary to support our businesses and our sectors that may be penalized." Other American allies, such as Israel and Vietnam, have been in touch with the administration about the tariffs.
U.S. stock futures dropped on Sunday night as the tariffs continued to roil the markets. The higher rates are set to be collected beginning Wednesday. Lawrence Summers, a former treasury secretary, criticized Trump and his economic team for sending contradictory messages on tariffs and manufacturing revival.
The tariffs have caused a ripple effect, with countries and businesses scrambling to adapt. As the situation continues to unfold, it remains to be seen how the global economy will be affected.
Reporting by Gomez Licon in Fort Lauderdale, Florida, and Giada Zampano in Rome.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Stopping Osteoporosis Treatment: Timeline Considerations
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
