Over 50 nations want to start trade talks with US after tariffs, Trump officials say
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US President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, on April 2.
PHOTO: REUTERS
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WASHINGTON - More than 50 nations have reached out to the White House to begin trade talks since US President Donald Trump rolled out sweeping new tariffs, top officials said on Sunday as they defended levies that wiped out nearly US$6 trillion (S$8 trillion) in value
On Sunday morning talk shows, Mr Trump’s top economic advisers sought to portray the tariffs as a savvy repositioning of the US in the global trade order. They also tried to minimise the economic fallout from last week’s tumultuous rollout, ahead of April 7’s expected bumpy opening of Asian stock markets.
Treasury Secretary Scott Bessent said more than 50 nations had started negotiations with the US since April 2’s announcement, putting Mr Trump in a position of power.
Neither Mr Bessent nor the other officials named the countries or offered details about the talks. However, holding simultaneous negotiations with so many countries at once could potentially pose a huge logistical challenge for the Trump administration. It is not clear how long such talks would last.
Taiwan’s President Lai Ching-te on April 6 offered zero tariffs
“He’s created maximum leverage for himself,” Mr Bessent said on NBC News’ Meet the Press.
Mr Bessent downplayed the stock market drop and said there was “no reason” to anticipate a recession based on the tariffs, citing stronger-than-anticipated US jobs growth.
“We could see from the jobs number on Friday, that was well above expectations, that we are moving forward, so I see no reason that we have to price in a recession,” Mr Bessent said.
Mr Trump jolted economies around the world after he announced broad tariffs on US imports, triggering retaliatory levies from China and sparking fears of a global trade war and recession.
US stocks tumbled by around 10 per cent
Analysts and large investors blamed the stock market drop on Mr Trump’s tariff push, which most economists and the head of the US Federal Reserve believe risk stoking inflation and damaging economic growth.
JPMorgan economists now estimate the tariffs will result in full-year gross domestic product declining by 0.3 per cent, down from an earlier estimate of 1.3 per cent growth, and that the unemployment rate will climb to 5.3 per cent from 4.2 per cent now.
As investors girded for the opening of stock markets in Asia, the Republican president spent the weekend in Florida, playing golf and posting a video of his swing to social media on April 6.
Tariff dealmaking
US customs agents began collecting Mr Trump’s unilateral 10 per cent tariff on all imports from many countries on April 5. Higher “reciprocal” tariff rates of 11 per cent to 50 per cent on individual countries are due to take effect on Wednesday at 12.01am Eastern time.
Some nations have already signalled a willingness to engage with the US to avoid the duties.
Taiwan’s President Lai Ching-te on April 6 offered zero tariffs as the basis for talks with the US, pledging to remove trade barriers and saying Taiwanese companies will raise their US investments.
Israeli Prime Minister Benjamin Netanyahu said he would seek a reprieve
An Indian government official told Reuters the country does not plan to retaliate against a 26 per cent tariff and said talks were under way with the US over a possible deal.
In Italy, Prime Minister Giorgia Meloni - a Trump ally - pledged on April 6 to shield businesses that suffered damage from a planned 20 per cent tariff on goods from the European Union.
Italian wine producers and US importers at a wine fair in Verona on April 6 said business had already slowed and feared more lasting damage.
No strategy to tank stock market
Tariff-stunned markets face another week of potential turmoil after the worst week for US stocks since the onset of the Covid-19 crisis five years ago.
The S&P 1500 Composite Index, among the widest measures of the US market, lost nearly US$6 trillion in value in the two days after Trump’s announcement and has had almost US$10 trillion wiped out since mid-February, a significant blow to millions of Americans’ retirement nest eggs.
White House economic adviser Kevin Hassett denied that the tariffs were part of a Trump strategy to crash financial markets to pressure the US Federal Reserve to cut interest rates. He said there would be no “political coercion” of the central bank.
In a Truth Social post on April 4, Mr Trump shared a video that suggested his tariffs aimed to hammer the stock market on purpose in a bid to force lower interest rates.
The social media post fueled global debate over whether Mr Trump’s tariffs were part of a permanent new tariff regime or simply a negotiating tactic that could lead to the tariffs being eased through concessions by other countries.
Commerce Secretary Howard Lutnick suggested on CBS News’ Face the Nation that they could be the latter, saying the tariffs would remain in place “for days and weeks.”
The process used to determine the tariffs came under scrutiny last week after they were applied to uninhabited Antarctic islands populated by penguins and other tiny, remote places.
Mr Lutnick said a comprehensive approach was needed so that small nations could not be used by larger countries 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,’“ Mr Lutnick said. REUTERS
