Markets across the globe continued to plummet on Sunday, following the shockwave caused by former President Donald Trump’s “Liberation Day” tariff announcement.
The aggressive new trade policy, which began rolling out on April 5, has left investors and economists scrambling for answers.
Despite the overwhelming negative financial response, Trump has doubled down on his stance, taking to social media to defend his tariffs as “a very beautiful thing.”
In a post shared on Truth Social, Trump expressed confidence that the tariffs would address the U.S. trade deficit with countries like China and the European Union.
“We have massive financial deficits with China, the European Union, and many others,” Trump wrote. “The only way this problem can be cured is with TARIFFS, which are now bringing tens of billions of dollars into the U.S.A.”
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Trump’s plan, which introduces a blanket 10% tariff on all imports, also includes heavy reciprocal tariffs aimed at key trading partners, including China and the EU, with levies on their goods soaring to over 50% and 20%, respectively.
Economists estimate that the average tariff rate could reach nearly 30%, marking the highest level in over a century. These additional tariffs are set to take effect on April 9.
While Trump remains bullish on the policy’s potential long-term benefits, the immediate fallout has been severe.
On Friday, the S&P 500 saw its worst two-day performance in months, with a drop of over 10%. The Nasdaq Composite entered a bear market, while Asian markets opened the week with sharp declines.
Responding to concerns about the turmoil, Trump shrugged off the market’s reactions, likening the situation to “taking medicine” for the greater good. “Sometimes you have to take medicine to fix something,” he said during a brief conversation with reporters aboard Air Force One.
Despite the ongoing turmoil, Trump insists that his aggressive tariffs will ultimately correct the U.S. trade imbalance and bring long-term benefits to the American economy.
