As global markets reel from heightened trade tensions, former U.S. President Donald Trump has defended his aggressive tariff policies, likening them to a “bitter but necessary medicine” for reviving the American economy. Despite widespread market volatility and investor fears of a looming global recession, Trump insists the short-term pain is worth the long-term gain.
Speaking aboard Air Force One over the weekend, Trump responded to questions about the recent market downturn, sparked by his administration’s decision to impose a 10% base tariff on all foreign imports starting Saturday. From Wednesday, increased tariffs of up to 20% are expected to take effect on goods from selected countries—including the European Union.
“This isn’t about causing a collapse,” Trump stated, as reported by Reuters. “But sometimes, you need the medicine to fix what’s broken.”
His comments come amid international backlash. Trump’s tariff announcement last week triggered retaliatory measures from China and fears of a full-blown global trade war. U.S. stock markets alone lost nearly $6 trillion in value, and Japan’s Nikkei 225 index opened with an 8% drop, according to DPA.
Despite the financial turbulence, Trump appeared undeterred. He claimed that world leaders, including those from Europe and Asia, have reached out in hopes of negotiating lower tariffs. However, he remained firm: “They want to talk, but there’s nothing to discuss unless they agree to pay us a lot of money each year.”
He dismissed accusations of market manipulation and rejected claims that his rhetoric was aimed at generating panic. “I couldn’t have predicted this market reaction,” Trump told reporters, according to AFP, adding that any future deals would be conditional on reducing America’s trade deficit.
Trump argues that the tariffs will encourage domestic manufacturing, bringing jobs back to the U.S. that were lost to overseas production. Yet, economists warn that the measures could drive inflation and reduce economic output if the trade war escalates.
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