Trump Stands Firm on Tariffs Amid Global Market Turmoil

U.S. President Donald Trump addressed the global market turmoil caused by his trade policies, stating that sometimes “you have to take your medicine.” He emphasized that he would not strike a deal until the trade deficit is resolved, asserting that he does not wish to harm anyone but would not back down from imposing tariffs.

According to U.S. media reports, Trump mentioned that China’s trade surplus is unsustainable and that he had discussed tariffs with European and Asian leaders. Recently, in retaliation for tariffs on various countries, including China, over a span of just two days, investors in the U.S. stock market saw losses exceeding $6 trillion.

International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned that U.S. tariffs pose a threat to the global economy, especially during a period of slow economic growth. U.S. Federal Reserve Chairman Jerome Powell also raised concerns about rising prices and slowing economic growth, and despite President Trump’s insistence, refused to reduce interest rates for now.

It is worth noting that President Trump imposed a total tariff of 54% on Chinese imports, to which China responded with a 34% tariff on U.S. goods.

In an interview with U.S. media, U.S. Treasury Secretary Steven Mnuchin dismissed concerns that tariff increases would lead to higher inflation and recession. He stated that tariffs are a one-time price adjustment, and there is a significant difference between a one-time adjustment and sustained price increases. Economists had previously warned that the tariffs could trigger a recession in the U.S.

Meanwhile, Director of the U.S. National Economic Council stated that over 50 countries had reached out for trade negotiations, emphasizing that the tariff announcement was not a political strategy. Analysts believe that Trump’s strategy of imposing tariffs may be aimed at pressuring financial markets into supporting a rate cut.