Following Trump's tariff announcement, US and global markets experienced significant drops. The Dow Jones Industrial Average saw its biggest point drop since 2020, while the S&P 500 and Nasdaq also suffered substantial losses. The White House, however, dismissed these reactions.
Trump likened the tariffs to a medical procedure, suggesting a positive outcome. He also anticipated calls from world leaders seeking negotiations, with Australian leaders indicating their intention to negotiate.
Howard Lutnick, a friend of Trump, stated that while Trump is open to deals, he wants other countries to act first. He emphasized that countries need to address their trade barriers before any deals can be made, suggesting that negotiation is currently unnecessary. Lutnick's comments highlight Trump's unwillingness to negotiate until other countries modify their trade practices.
The article points out that the tariffs weren't based on individual country trade barriers but rather on a generic formula dividing the US trade deficit by each country's exports to the US. This resulted in countries like Australia, with a trade surplus, receiving a baseline tariff of 10 percent.