Global markets opened to chaos this week after US President Donald Trump defended his newly imposed tariffs, calling them a “very beautiful thing to behold”. His remarks came as traders reeled from sharp losses and braced for more volatility.
Speaking on his social media platform Truth Social, Trump declared, “We have massive Financial Deficits with China, the European Union, and many others. 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. They are already in effect, and a beautiful thing to behold.”
He added, “The Surplus with these Countries has grown during the ‘Presidency’ of Sleepy Joe Biden. We are going to reverse it, and reverse it QUICKLY. Some day people will realize that Tariffs, for the United States of America, are a very beautiful thing!”
'Black Monday': Economic alarms sound — but Trump isn’t budging
Major financial institutions are growing increasingly concerned. JP Morgan raised its probability of a global recession from 40% to 60%. Goldman Sachs followed suit, revising its estimate from 20% to 35%. The aggressive tariff policy is raising costs for manufacturers and consumers alike, and economists warn this could trigger inflation without corresponding growth — a classic case of stagflation.
US Federal Reserve Chair Jerome Powell cautioned that such protectionist moves could lead to “higher inflation and lower growth.” But Trump fired back: “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS.”
For Trump, the policy is not just economic — it’s political. He blames President Biden for letting trade surpluses grow with America’s rivals and sees tariffs as a tool to reassert national strength. “We are going to reverse it, and reverse it QUICKLY,” he wrote.
Also Read: Donald Trump prescribes a dose of painful tariff ‘medicine’ as global markets wobble
A 10% global import duty and higher slabs on key partners
Trump’s announcement followed a sweeping policy rolled out on 2 April, which saw a flat 10% tariff imposed on all goods entering the United States. This move, which his administration dubbed “Liberation Day,” was designed to reset trade relationships and reduce what he labelled as “unfair” trade deficits.
On top of this universal levy, Trump’s team imposed stiffer, targeted tariffs on 57 countries, including major trading partners like China, Canada, Mexico, and the European Union. These so-called “reciprocal” tariffs were pegged to the size of America’s trade deficit with each country. For example, the tariff rate on Chinese imports is set to surge to 54% starting 9 April.
Further measures included a 25% tariff on all imported automobiles from 3 April, hitting European and Asian automakers particularly hard.
Commerce Secretary Howard Lutnick confirmed on CBS’s Face the Nation that the White House had heard from “about 50 countries” seeking talks, but stressed there would be no delay in rolling out the tariffs.
Also Read: 'Economic nuclear winter': Bill Ackman says business leaders losing faith in Trump as tariffs rattle markets
Black Monday Bloodbath: Markets in turmoil
The financial fallout has been swift. US stock markets lost nearly $6 trillion in value last week. The S&P 500 fell over 10% in just two days, and the Nasdaq Composite officially entered bear market territory on Friday. Asian markets followed suit on Monday, tumbling at the open as traders responded to heightened uncertainty.
Investors rushed to safer assets, pushing the yield on 10-year US Treasury bonds down to 3.92% — the lowest level since October.
Trump, however, brushed off the panic. “Big business is not worried about the Tariffs, because they know they are here to stay, but they are focused on the BIG, BEAUTIFUL DEAL, which will SUPERCHARGE our Economy. Very important. Going on right now!!!” he wrote on Truth Social.
He also remarked, “It is a great time to get rich.”
Comparisons to the Great Depression-era trade policy
Trump’s aggressive trade push has drawn comparisons to the 1930 Smoot-Hawley Tariff Act, which worsened the Great Depression by sparking retaliatory tariffs worldwide. The echoes of history are not lost on economists. Many warn that Trump's plan could backfire, sparking a full-blown trade war with devastating effects on growth.
The legality of Trump’s actions is also being challenged. Legal experts have raised concerns over whether the president has the authority to impose sweeping tariffs without Congressional approval. International trade bodies are closely watching how these disputes unfold.
If the tariffs remain in place, consumers in the US could soon face higher prices for everything from electronics and automobiles to household goods. Retailers and manufacturers that rely on imported components may pass those costs along to shoppers.
In response, countries like China, Canada, and the European Union have announced retaliatory duties on a range of US exports. This tit-for-tat dynamic threatens to upend global supply chains and could chill investment.
For now, the tariffs are set to intensify from 9 April. And despite the fallout, Trump is showing no signs of retreat. To him, the tariffs represent a bold reset — a blunt instrument to force renegotiations and bring money “back into the U.S.A.”
But to much of the world, it’s a gamble with high stakes and no clear end in sight.
Speaking on his social media platform Truth Social, Trump declared, “We have massive Financial Deficits with China, the European Union, and many others. 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. They are already in effect, and a beautiful thing to behold.”
We have massive Financial Deficits with China, the European Union, and many others. 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. They are already in effect, and a beautiful thing to behold. The Surplus…
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) April 7, 2025
He added, “The Surplus with these Countries has grown during the ‘Presidency’ of Sleepy Joe Biden. We are going to reverse it, and reverse it QUICKLY. Some day people will realize that Tariffs, for the United States of America, are a very beautiful thing!”
'Black Monday': Economic alarms sound — but Trump isn’t budging
Major financial institutions are growing increasingly concerned. JP Morgan raised its probability of a global recession from 40% to 60%. Goldman Sachs followed suit, revising its estimate from 20% to 35%. The aggressive tariff policy is raising costs for manufacturers and consumers alike, and economists warn this could trigger inflation without corresponding growth — a classic case of stagflation.
US Federal Reserve Chair Jerome Powell cautioned that such protectionist moves could lead to “higher inflation and lower growth.” But Trump fired back: “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS.”
For Trump, the policy is not just economic — it’s political. He blames President Biden for letting trade surpluses grow with America’s rivals and sees tariffs as a tool to reassert national strength. “We are going to reverse it, and reverse it QUICKLY,” he wrote.
Also Read: Donald Trump prescribes a dose of painful tariff ‘medicine’ as global markets wobble
A 10% global import duty and higher slabs on key partners
Trump’s announcement followed a sweeping policy rolled out on 2 April, which saw a flat 10% tariff imposed on all goods entering the United States. This move, which his administration dubbed “Liberation Day,” was designed to reset trade relationships and reduce what he labelled as “unfair” trade deficits.
On top of this universal levy, Trump’s team imposed stiffer, targeted tariffs on 57 countries, including major trading partners like China, Canada, Mexico, and the European Union. These so-called “reciprocal” tariffs were pegged to the size of America’s trade deficit with each country. For example, the tariff rate on Chinese imports is set to surge to 54% starting 9 April.
Further measures included a 25% tariff on all imported automobiles from 3 April, hitting European and Asian automakers particularly hard.
Commerce Secretary Howard Lutnick confirmed on CBS’s Face the Nation that the White House had heard from “about 50 countries” seeking talks, but stressed there would be no delay in rolling out the tariffs.
Also Read: 'Economic nuclear winter': Bill Ackman says business leaders losing faith in Trump as tariffs rattle markets
Black Monday Bloodbath: Markets in turmoil
The financial fallout has been swift. US stock markets lost nearly $6 trillion in value last week. The S&P 500 fell over 10% in just two days, and the Nasdaq Composite officially entered bear market territory on Friday. Asian markets followed suit on Monday, tumbling at the open as traders responded to heightened uncertainty.
Investors rushed to safer assets, pushing the yield on 10-year US Treasury bonds down to 3.92% — the lowest level since October.
Trump, however, brushed off the panic. “Big business is not worried about the Tariffs, because they know they are here to stay, but they are focused on the BIG, BEAUTIFUL DEAL, which will SUPERCHARGE our Economy. Very important. Going on right now!!!” he wrote on Truth Social.
He also remarked, “It is a great time to get rich.”
Comparisons to the Great Depression-era trade policy
Trump’s aggressive trade push has drawn comparisons to the 1930 Smoot-Hawley Tariff Act, which worsened the Great Depression by sparking retaliatory tariffs worldwide. The echoes of history are not lost on economists. Many warn that Trump's plan could backfire, sparking a full-blown trade war with devastating effects on growth.
The legality of Trump’s actions is also being challenged. Legal experts have raised concerns over whether the president has the authority to impose sweeping tariffs without Congressional approval. International trade bodies are closely watching how these disputes unfold.
If the tariffs remain in place, consumers in the US could soon face higher prices for everything from electronics and automobiles to household goods. Retailers and manufacturers that rely on imported components may pass those costs along to shoppers.
In response, countries like China, Canada, and the European Union have announced retaliatory duties on a range of US exports. This tit-for-tat dynamic threatens to upend global supply chains and could chill investment.
For now, the tariffs are set to intensify from 9 April. And despite the fallout, Trump is showing no signs of retreat. To him, the tariffs represent a bold reset — a blunt instrument to force renegotiations and bring money “back into the U.S.A.”
But to much of the world, it’s a gamble with high stakes and no clear end in sight.
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