United States President Donald Trump has disregarded the market turmoil brought on by his sweeping tariffs, likening the measures to “drugs” as panicked traders continued an enormous sell-off of worldwide shares.
“I don’t need something to go down however, typically, you must take drugs to repair one thing,” Trump informed reporters on board Air Drive One on Sunday.
“We’ve been handled so badly by different nations as a result of we had silly management that allowed this to occur. They took our companies, they took our cash, they took our jobs.”
Digging in on his so-called “reciprocal tariffs”, Trump mentioned he wouldn’t again down until different nations balanced their commerce with the US.
The US president mentioned he had spoken with many international leaders over the weekend who have been “dying to make a deal”.
“I mentioned, ‘We’re not going to have deficits together with your nation’,” Trump mentioned.
“We’re not going to do this, as a result of, to me, a deficit is a loss. We’re going to have surpluses or, at worst, going to be breaking even.”
Trump’s feedback got here as international shares continued to plummet amid fears of a international commerce battle and financial downturn.
Taiwan’s benchmark TAIEX and Hong Kong’s Hold Seng plunged about 10 p.c on Monday, whereas Japan’s Nikkei 225 dived practically 9 p.c.
In Singapore, the Straits Instances Index tumbled greater than 7 p.c.
South Korea’s KOSPI fell greater than 5 p.c, whereas Australia’s ASX 200 dropped about 6 p.c.
US shares have been set for additional steep losses when Wall Avenue reopens, following a two-day rout final week that worn out greater than $6 trillion in market worth.
Futures tied to the benchmark S&P500 have been down 2.70 p.c on Sunday, whereas these tied to the tech-heavy Nasdaq-100 have been down 3.55 p.c.
The US started imposing a baseline tariff of 10 p.c on imports on Sunday, with steeper duties of between 11 p.c and 50 p.c set to take impact on Wednesday.
The upper tariffs are set to hit each US rivals and allies alike.
Retaliatory measures
China, the US’s major strategic rival and its third-largest buying and selling companion, is dealing with a 34 p.c tariff, whereas the European Union, Japan and South Korea are bracing for tariffs of between 20 p.c and 25 p.c.
China final week introduced a raft of countermeasures, together with a 34 p.c tariff on all US imports and restrictions on exports of some important minerals, whereas the EU is making ready an inventory of US imports to focus on with greater duties.
On Sunday, Trump mentioned he was keen to barter with China, however any deal would rely upon the nation eliminating its massive commerce surplus with the US.
“We’ve an amazing deficit downside with China,” Trump mentioned.
A number of the US’s different buying and selling companions, together with the UK, Australia, Indonesia and Taiwan, have dominated out tit-for-tat measures in the intervening time.
Israeli Prime Minister Benjamin Netanyahu is on Monday set to grow to be the primary world chief to lift the tariffs with Trump face-to-face when he makes his second go to to the White Home because the US president’s January election.
“The 2 will focus on the tariff concern, the efforts to return our hostages, Israel-Turkey relations, the Iranian menace and the battle in opposition to the Worldwide Felony Court docket,” Netanyahu’s workplace mentioned in an announcement.
Amid the market turmoil, analysts have sharply raised the chances of the US coming into a recession throughout the subsequent 12 months.
JPMorgan final week raised the chance of a US recession to 60 p.c, whereas S&P International has put the chance at between 30 and 35 p.c.
“The dimensions and disruptive affect of US commerce insurance policies, if sustained, could be enough to tip a nonetheless wholesome US and international enlargement into recession,” Bruce Kasman, JPMorgan’s head of financial analysis, mentioned in a be aware titled “There Will Be Blood.”
Lawrence Summers, who served as treasury secretary beneath Democratic President Invoice Clinton, mentioned the markets have been reacting to “what could be the most damaging financial coverage” enacted by the US since World Battle II.
“What’s occurring in future markets now means that there’s actual disappointment that the President is doubling down on his errors,” Summers mentioned on X.
Trump administration officers have performed down the danger of an financial downturn regardless of the market chaos.
“There doesn’t should be a recession… who is aware of how the market goes to react in a day, in per week,” US Secretary of the Treasury Scott Bessent informed NBC’s Meet the Press on Sunday.
“What we’re is constructing the long-term financial fundamentals for prosperity, and I believe the earlier administration had put us on the course towards monetary calamity.”
