Tariffs have been widely criticized around the world for threatening to push the global economy into a recession.
More than 50 countries contacted the White House directly to commence trade talks after President Donald Trump imposed widespread punitive tariffs, executive officials said.
Tariffs that hit global markets last week, causing nearly $6 trillion in US stock prices, attracting global attention and creating fears of a potential economic downturn. But the Trump administration has downplayed it and has the potential for even more devastating economic fallout.
In the meantime, investors were nervously waiting for the US deal to open after the Wall Street sale last week. The Asian market will be open in the coming hours and expect rocky days.
In a series of interviews on Sunday morning talk show, Trump’s top economic advisers defended tariffs and described them as strategic moves to strengthen the US position in global trade.
Treasury Secretary Scott Bescent said more than 50 countries have begun negotiations with the US since tariffs were announced Wednesday, but have not disclosed the countries involved.
Bescent claimed that tariffs had “maximum leverage” on Trump, but the impact on the US economy remains uncertain. He dismissed concerns about the recession and cited unexpectedly strong employment growth in the United States.
Trump’s broad tariffs came into effect on Saturday.
The first 10% “baseline” tariffs were implemented in US ports, airports and customs warehouses, and Trump completely rejected the post-World War II system of mutually agreed tariff rates.
Decline in US GDP
Nevertheless, economists have warned that tariffs could lead to a decline in US gross domestic product (GDP), with JP Morgan Economists revising their growth forecast from a 1.3% increase to a 0.3% decrease.
Tariffs aimed at pressure foreign governments to make concessions have led to retaliation, including large sums from China, increasing the fears of the world trade war.
US allies such as Taiwan, Israel, India and Italy have already expressed interest in negotiating with the US to avoid tariffs.
Taiwan’s leader, Rai Qingte, provided zero tariffs as a basis for the meeting, with Israeli Prime Minister Benjamin Netanyahu sought relief from the 17% tariff on Israeli goods.
Meanwhile, the US will continue to implement tariffs and is expected to implement “mutual” obligations on Wednesday.
Critics raised concerns about the methods used to determine tariffs, especially after being applied to some remotely undisturbed territories.
Commerce Secretary Howard Lutnick defended the strategy and argued that it aimed to prevent the country from avoiding tariffs through loopholes.
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