WASHINGTON: US President Donald Trump on Sunday said he will not back down on his sweeping global tariffs, defending the levies as necessary “medicine” to correct trade imbalances, even as markets around the world reel from the economic uncertainty.
Speaking aboard Air Force One, Trump brushed aside concerns over a potential recession and deepening market turmoil, saying, “Sometimes you have to take medicine to fix something.”
His remarks followed a weekend of turmoil in financial markets, with global stocks in freefall and investors fearing a broader economic slowdown. US stock futures dipped again Sunday night, with the S&P 500 down 2.5% and the Nasdaq shedding over 3%.
Asian markets plunged at Monday’s open, led by a 9.4% drop in Hong Kong’s Hang Seng Index and a near 8% fall in Japan’s Nikkei 225. The Shanghai Composite Index was down more than 6%.
The tariffs, which take effect this week, impose additional levies on imports from both allies and rivals. Countries such as Israel, Vietnam, and Italy have signalled concern, with leaders expected to press the U.S. for exemptions or negotiations.
“I spoke to a lot of leaders… They’re dying to make a deal,” Trump said, adding that the US would no longer tolerate trade deficits.
Trump’s economic team appeared on multiple Sunday programmes defending the policy shift. Treasury Secretary Scott Bessent said tariffs were necessary to confront unfair trade practices, while White House adviser Kevin Hassett said over 50 countries had reached out to initiate talks.
Commerce Secretary Howard Lutnick confirmed the tariffs would go ahead, calling them a long-overdue correction to the global trade order. “The tariffs are coming. Of course they are,” he said.
The administration’s stance has drawn bipartisan attention in Congress. While some Republicans back the move, others are pushing legislation to reassert congressional control over trade policy. A new bill would require the White House to seek approval for any new tariffs within 60 days.
Among those calling for oversight is Republican Rep. Don Bacon, who said the shift of trade powers to the executive branch may have been “a mistake.”
In an unexpected note of dissent, Trump’s cost-cutting czar Elon Musk called for a move toward “a zero-tariff situation” between the US and Europe. The comment drew criticism from adviser Peter Navarro, who accused Musk of protecting personal business interests.
Trump dismissed the idea of easing tensions without major concessions, particularly from the EU. “There’s no talk unless they pay us a lot of money on a yearly basis,” he said.
As markets await the tariff implementation on Wednesday, the administration has warned that the economic fallout may be long-term but insists it is a necessary adjustment.
“There doesn’t have to be a recession,” Bessent said. “What we are looking at is building the long-term economic fundamentals for prosperity.”
