Trump's reaction to market turmoil after tariff news

Just a day after announcing unprecedented tariffs targeting more than 180 countries, Mr Trump calmly declared that things were “going very well” despite the collapse of stock indexes.

Mr. Trump announced new tariffs. Screenshot.

"This is like a major surgery that is needed for the American economy," Mr. Trump said during a press conference at the White House. "We're going to take in $6 trillion to $7 trillion, which is unprecedented. The market is going to explode, stocks are going to skyrocket, and the country is going to take off."

The confident words came as Wall Street suffered its worst day since 2022. As of the afternoon of April 3, the S&P 500 had lost 4.3% of its value, while the Nasdaq had plunged more than 5%. Asian and European markets were also in the red as global investors were shaken by the prospect of a new trade war.

The "Trump 2.0" tariff system is designed with three main levels: 1. A base tax of 10% applied to all imported goods; 2. "Reciprocal" taxes ranging from 20-50% targeting 60 countries; 3. In particular, a 25% import tax on cars takes effect immediately.

China will be hit with a 34% tariff, in addition to the previous 20%. Other major trading partners such as the EU (20%), South Korea (25%), and Japan (24%) will not be spared the punishment. Notably, some countries face unreasonably high tariffs: Lesotho (50%), Cambodia (49%), Vietnam (46%), and Laos (48%).

The calculation mechanism behind these numbers was explained by the White House as being based on the formula: (US trade deficit with each country)/(That country's total exports to the US), then halved to show "generosity". However, this method immediately faced a wave of criticism from economic experts.

“This is a bizarre formula that has never been seen before in the history of international trade,” said Alan Deardorff, an economics professor at the University of Michigan. “It severely penalizes countries that have extensive trade relationships with the United States, regardless of whether those relationships are mutually beneficial.”

While markets continue to be volatile, the tariff roadmap is still proceeding as planned: a 25% auto tax will take effect on April 3, a 10% base tax will start on April 5, and “reciprocal” tariffs will officially apply from April 9.

The consequences of this decision may last for months to come. But in his usual style, Mr. Trump remained steadfast in his stance: "The world has taken advantage of America for too long. Now it is time for them to pay the price."

Cao Phong (according to Newsweek, FT)

Source: https://www.congluan.vn/phan-ung-cua-ong-trump-truoc-su-hon-loan-cua-thi-truong-sau-thong-tin-thue-quan-post341388.html