By April 9, tariffs on Chinese goods had reached an effective efficiency of 54%. On April 3, a 25% tax on imported cars was imposed. Trump said the goal is simple: ultimately trade deficit and protect U.S. work.
“Very beautiful stuff”
For Trump, tariffs are not only a policy, but also personal.
“We have huge financial flaws with China, the EU and many others. The only way to solve this problem is to get along with tariffs that are now bringing tens of thousands of dollars to the United States, and they are already working, and that’s a beautiful thing.”
He added: “The surplus of these countries has been growing during the sleepy Joe Biden’s president. We will reverse it and turn it around quickly.
Market consequences and recession anxiety
As the tariffs take effect, the market retreated. Futures for Dow Jones, S&P 500 and Nasdaq all fell sharply on Sunday night. Bitcoin fell by nearly 6%. Oil prices are below $60 a barrel, the lowest since 2021. Trump responded to economic troubles in a typical way. “I don’t want anything to fall, but sometimes you have to take medicine to fix something,” he told Air Force One. “I can’t tell you what’s going to happen in your market. But our country is much stronger.”
He doubled down on the policy: “I won’t reach an agreement unless we solve this problem.”
Allies hit, temper rises
The rebound has been very rapid. Israel is one of the closest U.S. partners, knocked down 17% tariffs. Prime Minister Benjamin Netanyahu is expected to hold emergency talks in Washington. Vietnam, the main trading partner of the United States, demanded a 45-day delay in tariffs imposed on exports.
Italy’s Prime Minister Giorgia Meloni expressed strong disagreement, but her government “was ready to deploy all tools (negotiation and economy) to support our businesses and sectors that may be punished.”
However, Trump insists that the global response proves his point.
“I talked with many leaders, Europeans, Asians from all over the world,” he said. “They are eager to reach a deal. I said we won’t have a deficit with your country. We won’t do that because for me, the deficit is a loss. We will have a surplus or the worst case, and it will even break down.”
“Maximum leverage” or the biggest risk?
Trump’s advisers try to ease the consequences. Treasury Secretary Scott Bessent told NBC media: “At the moment, he created the biggest leverage for himself…I think we’re going to have to see what the country has to offer and whether it’s convincing.”
“Other countries have been bad actors for a long time, and that’s not something you can negotiate in a few days or weeks,” Bessent admitted.
“More than 50 countries have reached out to start negotiations with the president,” White House National Economic Commission head Kevin Hassett told ABC this week. But he defended the decision to put pressure. “They know they’re taking a lot of tariffs,” he said. “I don’t think you’re seeing a big impact on American consumers.”
Musk breaks silence, sparks conflict
Elon Musk, who now leads the Trump administration’s efficiency department, has remained silent on trade matters until now. Musk said during a weekend event in Italy that he hopes for “zero timely situation” between the United States and Europe.
This has attracted keen condemnation from Trump’s trade adviser Peter Navarro. “Elon was great when he was on his Doge Lane. But we know what was going on here. Elon sells cars,” Navarro told Fox News. “He just protects his own interests like any businessman.”
Trump seems to support Navarro. “They want to talk, but unless they pay a lot of money each year, they won’t talk.”
Congress pushes back
Although Trump has long opposed diplomatic agreements, his move to bypass Congress with these new tariffs is facing increasing resistance from lawmakers, including his own party.
Several Republican senators are supporting bills that curb trade presidential powers. The proposals from both parties will force the president to provide new tariffs to Congress, which will then need to approve them within 60 days.
“We gave the executive some power. I think in hindsight, it was a mistake,” said Rep. Don Bacon, a Republican of Nebraska. “Unless the market keeps gliding and we see a shift in inflation or unemployment, it’s hard to get through.”
John Barrasso, a second-place Republican in the Senate, defended Trump’s right to move, but admitted: “People are worried that they will attract attention all over the country. People are paying attention to the market.”
Economists warn of long-term damage
Larry Summers, former Treasury Secretary who served as President Bill Clinton, criticized Trump’s trade strategy. “If this is a permanent source of income and trying to get businesses to relocate to the U.S., then we will permanently impose these tariffs. So the president can’t do it in both directions,” he said this week.
“Like the market we saw on Thursday and Friday, there is a high chance of greater turmoil in the market,” Summers added.
Even in Saudi Arabia, the market will feel the impact. The decline fell by 6.78% on Sunday, the worst single-day loss since the 19th crisis.
A split world, an uncertain road
The White House said Russia was excluded from the tariff list because trade with the United States has become less than 100% due to existing sanctions. Despite this, the problem persists. Trump insists that countries have “deprived” the United States for decades and tariffs have finally escalated the competitive environment.
Trump spent the weekend playing golf from Florida online, “We’ll win.
The message is obvious: Trump did not retreat. But the market is not a trading partner of the United States. What happens next could reshape global trade rules or put them into further chaos.
