Over 50 Countries Seek Trade Talks with US After New Tariffs
More than 50 countries have reached out to the White House to request trade discussions following US President Donald Trump’s implementation of sweeping tariffs, according to administration officials.
The new tariffs, which led to a nearly $6 trillion drop in US stock market values last week and sent shockwaves through global markets, have been widely criticized for potentially triggering a global recession. However, the Trump administration has downplayed these concerns, maintaining that the tariffs are part of a strategy to strengthen the US’s position in global trade.
Global Markets on Edge
As global markets continue to reel from the impact, investors are anxiously awaiting the start of US trading after last week’s market selloff. Wall Street is bracing for another week of volatility, while Asian markets are expected to experience a turbulent day when they open in the coming hours.
In a series of interviews on Sunday morning, Trump’s economic advisors defended the tariffs, calling them a necessary move to push foreign governments into making trade concessions. Treasury Secretary Scott Bessent revealed that over 50 nations have already initiated talks with the US, though he did not disclose the specific countries involved. He emphasized that the tariffs give Trump “maximum leverage,” despite uncertainties surrounding their long-term impact on the US economy. Bessent dismissed fears of a recession, pointing to stronger-than-expected job growth in the US.
Economic Impact and Growing Tensions
The tariffs, which came into effect on Saturday, are part of Trump’s broader rejection of the post-World War II system of mutually agreed tariff rates. The initial 10% tariffs were applied to goods arriving at US seaports, airports, and customs warehouses.
However, economists are warning that the tariffs could lead to a decline in US GDP. JPMorgan economists have revised their growth forecast from a 1.3% increase to a 0.3% decrease. The tariffs, intended to pressure foreign governments into concessions, have already led to retaliatory measures, including significant levies from China, raising concerns about the risk of a full-scale global trade war.
Countries Seek Relief
US allies such as Taiwan, Israel, India, and Italy have already expressed interest in negotiating with the US to avoid the tariffs. Taiwanese President Lai Ching-te proposed a zero-tariff agreement as the basis for talks, while Israeli Prime Minister Benjamin Netanyahu has requested relief from the 17% tariff on Israeli goods.
Despite these diplomatic efforts, the US continues to enforce the tariffs, with additional “reciprocal” duties set to take effect on Wednesday.
Criticism of Tariff Strategy
Critics have raised concerns about the method used to determine the tariffs, particularly after they were applied to some remote, uninhabited territories. Commerce Secretary Howard Lutnick defended the approach, arguing that it was necessary to close loopholes and prevent countries from circumventing the tariffs.
As the global economic landscape shifts, all eyes will be on how the US navigates these trade negotiations and whether it can avoid further escalating tensions on the world stage.
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