Over 50 countries have contacted the White House to start trade talks after President Trump imposed new tariffs.
These sweeping tariffs triggered a $6 trillion drop in US stock values, shaking investor confidence worldwide. Although markets reacted sharply, the Trump administration played down fears of a global economic crisis.
Now, investors are watching closely. US markets reopen this week after a steep Wall Street selloff. Asian markets, opening soon, are expected to face turbulence amid growing uncertainty.
During Sunday talk shows, Trump’s economic advisers defended the move, calling it a smart strategy for trade dominance. Treasury Secretary Scott Bessent confirmed that over 50 nations had reached out since Wednesday’s announcement.
However, he did not name the countries involved. Bessent claimed the tariffs gave the US “maximum leverage” in ongoing and future negotiations. He dismissed fears of a recession, citing strong job growth as evidence of economic resilience. The new tariffs officially took effect on Saturday.
A 10% baseline tariff now applies at US seaports, airports, and customs warehouses. This marked a complete shift away from post-WWII mutual tariff agreements.
Despite White House confidence, economists have issued warnings. JPMorgan revised its US GDP growth forecast from 1.3% up to a 0.3% decline. They blamed the downgrade on potential ripple effects caused by these aggressive trade measures. The tariffs aim to pressure foreign governments into making concessions.
However, they have also triggered retaliatory measures from countries like China. This has intensified fears of an escalating global trade war.
Allies Respond to Avoid Tariff
Several US allies, including Taiwan, Israel, India, and Italy, have shown interest in starting trade talks. Taiwan’s leader Lai Ching-te proposed zero tariffs as a starting point for discussions. Israeli Prime Minister Benjamin Netanyahu asked for relief from a 17% tariff on Israeli goods.
Meanwhile, the US is preparing to implement additional “reciprocal” duties starting Wednesday. Critics have raised concerns over how the tariffs were determined. Some tariffs even apply to remote, uninhabited regions.
Commerce Secretary Howard Lutnick defended the policy, saying it blocks countries from using legal loopholes. He emphasized that the goal is to ensure fair and enforceable trade practices.
