Trump Medicine Hits Hard as Asia’s Stocks Slide
Synopsis
Donald Trump is calling his sweeping tariffs "medicine" as they shake up global markets. Speaking aboard Air Force One on Sunday, Trump said foreign governments will need to pay "a lot of money" to…
Donald Trump is calling his sweeping tariffs "medicine" as they shake up global markets. Speaking aboard Air Force One on Sunday, Trump said foreign governments will need to pay "a lot of money" to have the tariffs lifted. Asian markets took a hit, with stocks tumbling early Monday. U.S. stock futures also dropped sharply. Investors are worried the tariffs could lead to higher costs, weaker demand, and possibly a global recession.
"I don’t want anything to go down," Trump said. "But sometimes you have to take medicine to fix something." He made the comments after returning from a golf trip in Florida. Over the weekend, Trump spoke with leaders in Europe and Asia. They’re hoping to negotiate lower tariffs, some set as high as 50% and ready to kick in this week.
The Bitter Dose of Trump Medicine
Trump insisted there would be no talks unless countries agreed to pay the U.S. on a yearly basis. "They are coming to the table," he said, "but they have to pay." His recent tariff announcement has rattled global economies, led to retaliation from China, and sparked fears of a trade war.
On Sunday talk shows, Trump’s advisers defended the move. Treasury Secretary Scott Bessent called it "maximum leverage" for the U.S. Commerce Secretary Howard Lutnick confirmed the tariffs will stay in place "for days and weeks."
Meanwhile, billionaire Bill Ackman, a Trump supporter, warned of an "economic nuclear winter" if the tariffs don’t pause. He pointed out Trump is losing support among business leaders.
JPMorgan economists predict the U.S. GDP will drop by 0.3% for the year, with unemployment rising to 5.3% from 4.2%. Yet, the White House insists the strategy is bold and positions the U.S. strongly in global trade talks.
Customs agents started collecting Trump’s 10% tariff on imports Saturday, with higher rates of up to 50% set to begin Wednesday. Leaders in countries like Taiwan, Israel, and India are signaling a willingness to negotiate. Taiwan’s President has offered zero tariffs, and Israel's Prime Minister plans to discuss reprieves during a meeting with Trump. India is holding talks despite facing a 26% tariff.
Italian businesses, especially in the wine industry, are already feeling the pressure. Prime Minister Giorgia Meloni has promised to protect companies hurt by the tariffs. The backlash builds as markets brace for Wednesday’s changes. For now, Trump medicine is stirring up debate, fear, and a potential shift in global trade policies.
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