According to Reuters, speaking on Air Force One after the Florida vacation, Mr. Trump said that he did not want the market to decline, but this could be a medicine for the market and the economy.
He revealed that he had discussed with European and Asian leaders over the weekend, who were trying to convince him to cut the tax rate by up to nearly 50%, which would take effect this week.
The Asian stock market recorded a sharp decline in the early trading session on April 7, while US stock futures also plummeted. Investors are concerned that tariffs will push up commodity prices, weaken consumer demand, reduce market confidence and could cause a global recession.
Trump's tax move last week shook many economies, prompting retaliatory measures from China and raising concerns about a large-scale trade war. Meanwhile, his economic advisers seek to reassure public opinion that this is a rectifying positioning strategy calculated in the global trade order.
US Treasury Secretary Scott Bessent said that more than 50 countries have begun negotiations since the counterpart tax announcement on April 2. He has created the maximum negotiating advantage for himself, Bessent said. Commerce Secretary Howard Lutnick said the tariffs would be maintained for days or weeks.
Meanwhile, White House economic adviser Kevin Hassett denied the tax was aimed at pressuring the central bank to cut interest rates, saying there was no political interference in monetary policy.
Some governments have expressed goodwill to negotiate to avoid being taxed. Israeli Prime Minister Benjamin Netanyahu has planned to request a 17% tax exemption. An Indian official said the country has no intention of paying a 26% fee and is negotiating to reach an agreement. In Italy, Prime Minister Giorgia Meloni said he would protect businesses affected by the 20% tax on EU goods.
