White House Advisers Reveal Over 50 Countries Seeking US Trade Negotiations Amid Tariff Issues
Since US President Donald Trump introduced extensive new tariffs, over 50 countries have reached out to the White House to initiate trade discussions, according to his economic advisers.
Officials from the Trump administration have defended the tariffs, which resulted in nearly $6 trillion loss in US stock values last week, while downplaying the potential economic impact.
This morning, Mr. Trump’s senior economic advisers attempted to frame the tariffs as a strategic repositioning of the US within the global trade landscape. They also sought to mitigate concerns regarding the economic repercussions of last week’s chaotic implementation, in anticipation of a turbulent opening for Asian stock markets tomorrow.
Treasury Secretary Scott Bessent indicated that more than 50 nations have begun talks with the US since last Wednesday’s announcement, placing Mr. Trump in a position of power.
Donald Trump unveiled a series of new tariffs on Wednesday
Taiwan’s President Lai Ching-te has proposed zero tariffs as a foundation for negotiations with the US, committing to eliminate trade barriers and stating that Taiwanese companies will increase their investments in the US.
“He’s created maximum leverage for himself,” Mr. Bessent remarked on NBC News.
Mr. Bessent downplayed the recent stock market decline, asserting that there was “no reason” to expect a recession as a result of the tariffs, citing unexpectedly strong US jobs growth.
“The jobs number we saw on Friday, which was significantly above expectations, indicates that we are progressing, so I see no need to predict a recession,” Mr. Bessent stated.
Mr. Trump unsettled global economies following his announcement of broad tariffs on US imports, prompting retaliatory measures from China and raising fears of a worldwide trade war and recession.
US stocks plummeted by approximately 10% in the two days following Mr. Trump’s introduction of a new, more aggressive global tariff regime than analysts and investors had anticipated.
Analysts and major investors attributed the stock market downturn to Mr. Trump’s tariff initiatives, which many economists and the head of the US Federal Reserve believe could ignite inflation and hinder economic growth.
S&P 1500 Composite Index lost nearly $6 trillion in value in the two days after the announcement
JPMorgan economists now project that the tariffs will lead to a decline in full-year gross domestic product by 0.3%, revised down from an earlier forecast of 1.3% growth, and that the unemployment rate will rise to 5.3% from the current 4.2%.
Markets, stunned by the tariffs, brace for another week of potential upheaval following the worst week for US stocks since the onset of the Covid-19 pandemic five years ago.
The S&P 1500 Composite Index, one of the broadest measures of the US market, lost nearly $6 trillion in value over the two days that followed Mr. Trump’s announcement, with almost $10 trillion wiped out since mid-February, a major hit to millions of Americans’ retirement savings.
During an interview on ABC News’ ‘This Week,’ US National Economic Council Director Kevin Hassett refuted claims that the tariffs were part of a Trump strategy to depress financial markets to pressure the US Federal Reserve into cutting interest rates, stating there would be no “political coercion” of the central bank.
In a Truth Social post on Friday, Mr. Trump shared a video suggesting that his tariffs were intentionally aimed at weakening the stock market to force lower interest rates.
This social media post fueled global speculation about whether Mr. Trump’s tariffs constitute a permanent new tariff regime or merely a negotiation tactic that could lead to the easing of tariffs through concessions from other nations.
Commerce Secretary Howard Lutnick indicated on CBS News’ ‘Face the Nation’ that the tariffs might represent the latter scenario, suggesting the tariffs would remain in effect “for days and weeks.” He noted that reciprocal tariffs would be implemented as scheduled on April 9.
The approach used to establish the tariffs came under scrutiny last week after they were applied to uninhabited Antarctic islands populated by penguins and other remote locations.
Mr. Lutnick emphasized the need for a comprehensive strategy to prevent smaller nations from being utilized by larger countries to evade tariffs.
“Basically (Trump) said, ‘I can’t allow any region of the world to serve as a conduit for China or other countries’,” Mr. Lutnick explained.
Billionaire Elon Musk, a Trump adviser, stated yesterday his aspiration for future trade to be free between the US and Europe.
Peter Navarro, a Trump trade adviser, dismissed suggestions of a rift between Mr. Musk and the Trump administration regarding tariff policy, although he acknowledged that the Tesla CEO was looking out for his business interests.
“There is no rift here,” Mr. Navarro reassured Fox News.
The new world will be governed less by established rules and ‘more by deals and alliances’, Keir Starmer said
The “world as we knew it” has ended, British Prime Minister Keir Starmer remarked, as the globe braces for further repercussions following the implementation of US tariffs.
Mr. Trump’s declaration of sweeping tariffs on Wednesday illustrates that “old assumptions can no longer be taken for granted,” Mr. Starmer stated in an op-ed for the Sunday Telegraph newspaper.
“The world as we knew it has disappeared,” he wrote.
The emerging world will be governed increasingly by deals and alliances rather than established rules, the prime minister added.
The tariffs have already sent markets into freefall, and all eyes will be on tomorrow’s market opening as Mr. Trump cautions Americans of impending difficulties.
“This represents an economic revolution, and we will emerge victorious,” the Republican president posted on Truth Social yesterday. “Hold on tight; it won’t be easy, but the end result will be historic.”
Mr. Trump’s 34% tariff on Chinese goods is set to take effect next week, prompting Beijing’s announcement of a 34% tariff on US products effective April 10.
The EU and Japan are also among the approximately 60 trading partners facing even higher tariffs on April 9, igniting concerns of recessions in some of the world’s major economies.
Wednesday’s announcement has precipitated a frantic scramble for responses from various countries, with Zimbabwe President Emmerson Mnangagwa declaring he would suspend all tariffs on goods imported from the US after being subjected to an 18% tariff.
The UK has, so far, been relatively spared with a 10% tariff, and Mr. Starmer noted that the nation’s response “demands the best of British virtues – calmness, pragmatism, and a clear understanding of our national interest.”
The UK leader reiterated his government’s stance that “nobody wins from a trade war,” asserting that the immediate approach is “to remain calm and pursue the best deal.”
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Nevertheless, he insisted that a US trade deal will only be pursued “if it is advantageous for British business,” with “all options remaining on the table” in response to the tariffs.
The new tariffs represent “the most extensive increase in tariffs since the Smoot-Hawley Tariff Act, the 1930 legislation most noted for inciting a global trade war and exacerbating the Great Depression,” according to the Centre for Strategic and International Studies.
In a clear indication of the ramifications, UK luxury car manufacturer Jaguar Land Rover announced yesterday that it would “pause” shipments to the United States in April as it navigates “the new trading terms”.
Acknowledging the transforming global economic landscape, Mr. Starmer stated he is now inclined to employ direct state intervention to safeguard certain sectors.
“This week we will accelerate plans aimed at improving our domestic competitiveness,” he noted ahead of an anticipated significant announcement regarding industrial strategy.
“We are poised to utilize industrial policy to protect British business from the impending storm.
“Some may feel uneasy about this… but we simply cannot cling to outdated notions while the world shifts so rapidly,” he concluded.
