Donald Trump at the White House in Washington, D.C., April 2, 2025. REUTERS/Carlos Barria
White House Reports Over 50 Nations Engaging in Trade Talks Following New U.S. Tariffs
WASHINGTON / PALM BEACH / BEIJING — April 6, 2025 — More than 50 countries have initiated trade negotiations with the United States following President Donald Trump’s sweeping announcement of new tariffs last week, according to senior administration officials. Despite a sharp decline in U.S. stock markets and growing fears of a global recession, White House advisers defended the economic measures on Sunday and downplayed the potential for lasting economic damage.
Administration Defends Tariff Strategy Amid Market Volatility
Speaking on multiple Sunday morning talk shows, top economic officials characterized the new tariffs as a strategic repositioning of the United States in the global trade system. Treasury Secretary Scott Bessent stated that the influx of trade negotiations placed the U.S. in a “position of power,” though he declined to specify which nations had initiated talks or to offer further details.
Bessent dismissed concerns over last week’s significant market losses, asserting there is “no reason” to anticipate a recession, pointing instead to unexpectedly strong U.S. job growth data. However, economists at JPMorgan revised their U.S. growth forecasts downward, projecting a 0.3% decline in full-year GDP compared to an earlier estimate of 1.3% growth. The bank also expects unemployment to rise to 5.3%, up from 4.2%.
New Tariff Structure and International Responses
As of Saturday, U.S. customs agents began collecting a unilateral 10% tariff on imports from numerous countries. A second wave of “reciprocal” tariffs ranging from 11% to 50% is set to take effect on Wednesday at 12:01 a.m. EDT (4:01 a.m. GMT).
Several countries have signaled a willingness to negotiate in order to avoid or reduce the tariffs:
- Taiwan: President Lai Ching-te proposed zero tariffs as a framework for trade talks, vowing to eliminate trade barriers and boost Taiwanese investment in the U.S.
- Israel: Prime Minister Benjamin Netanyahu said he would seek an exemption from a 17% tariff during a planned meeting with President Trump.
- India: A government official indicated that New Delhi does not plan to retaliate against a 26% tariff and is currently engaged in discussions with Washington.
- Italy: Prime Minister Giorgia Meloni pledged to protect businesses impacted by a 20% tariff on EU goods. Italian wine producers and U.S. importers at a Verona trade event expressed concern over declining business.
Market Reaction and Political Speculation
Following the announcement of the tariffs, the S&P 1500 Composite Index experienced its worst two-day loss since the onset of the COVID-19 pandemic, shedding nearly $6 trillion in value. Since mid-February, the broader market has lost close to $10 trillion, raising alarm over the potential impact on American retirement savings and household wealth.
White House economic adviser Kevin Hassett rejected suggestions that the administration intentionally triggered a market crash to pressure the Federal Reserve into cutting interest rates. This followed a social media post by President Trump sharing a video suggesting such a tactic. Hassett emphasized that there would be no “political coercion” of the central bank.
Commerce Secretary Howard Lutnick appeared on CBS’s Face the Nation, implying that the tariffs could be temporary and subject to reversal depending on the outcomes of ongoing negotiations. “They could remain in place for days or weeks,” Lutnick said.
Concerns Over Tariff Implementation
The process used to determine the tariffs has faced scrutiny after reports emerged that some levies were applied to uninhabited Antarctic territories. Lutnick defended the broad application of the policy, arguing it was necessary to prevent larger economies from using small nations to circumvent the tariffs.
“Basically, [Trump] said, ‘I can’t let any part of the world be a place where China or other countries can ship through them,’” Lutnick explained.
Outlook
As Asian markets prepare to open, global investors remain on edge amid growing uncertainty over whether the tariffs represent a new long-term trade doctrine or a temporary bargaining tool. With over 50 nations now in discussions with Washington, the coming weeks may reveal whether the administration’s aggressive approach yields substantive trade concessions or deepens global economic instability.
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