Trump says tariffs are the only way to solve deficits with other countries
As Asian stocks plummeted during early trading today, Trump said that his tariffs are the only way to solve “financial Deficits with China, the European Union, and many others.”
“Some day people will realize that Tariffs, for the United States of America, are a very beautiful thing,” Trump wrote in a post on his Truth Social platform, adding that the tariffs are bringing “Tens of Billions of Dollars” into the U.S.
While speaking to reporters aboard Air Force One yesterday, Trump said that foreign governments would have to pay “a lot of money” to lift the sweeping tariffs and called them “medicine,” leading to global financial markets convulsing even further.
“I don’t want anything to go down. But sometimes you have to take medicine to fix something,” he said.
Meanwhile, U.S. stock market futures opened sharply lower as investors expressed concerns over the risk of a global recession brought on by higher prices, weaker demand and lower confidence.
European markets open, London’s FTSE 100 plunges 5%
Markets in Europe followed the plunge in Asia today, with London’s FTSE 100 index falling over 5% in its early hours of trading.
Germany’s DAX index appeared to lead the rout in Europe, falling as much as 10% early today. Rheinmetall, a German defense manufacturer that had enjoyed a rally from Europe’s push to be self-reliant in defense, plunged over 14%.
France’s CAC 40 and the Swiss market index also fell 6% as the fallout from Trump’s tariffs extended to the broader European Union, which is meeting in Luxembourg today to consider its response.
Asia markets open to a bloodbath
The turmoil of President Donald Trump’s tariffs reverberated around the world, including in Asia, where markets opened to a bloodbath, triggering circuit breakers in some places.
Hong Kong led the losses in the region, where trading resumed after a holiday on Friday, with the Hang Seng Index plunging 11% in one of its biggest single-day falls, while Japan’s Nikkei 225 index lost more than 7% in value.
Trading was briefly halted in Japan after the futures for the Nikkei 225 and Topix briefly dipped below 8% — activating automatic circuit-breakers that stop a market freefall. The broader Topix index in Japan, and China’s CSI 300 index, also recorded similar losses. In Australia, the S&P/ASX 200 extended losses to 5.3%.
In South Korea, where the Kospi index recorded a 5% plunge, authorities announced they were prepared to provide up to 100 trillion won ($68 billion) in emergency liquidity and other market stabilization measures.
Trump to host the Los Angeles Dodgers at the White House
Trump this morning is set to host the Los Angeles Dodgers, winners of the 2024 World Series.
Shortstop Mookie Betts told reporters last week that he will be in attendance, despite previously declining Trump’s invitation to visit the White House in 2019 when Betts played for the Boston Red Sox.
Trump to hold joint news conference with Netanyahu as Israeli PM seeks tariff relief
Trump will hold a joint news conference this afternoon with Israeli Prime Minister Benjamin Netanyahu, the White House said.
The prime minister’s visit comes less then a week after Trump imposed a 17% tariff on Israeli goods, even though the country had canceled all its tariffs on goods from the U.S., its largest trading partner.
Netanyahu will seek relief from the tariffs, he said in a statement yesterday. He will be the first world leader to meet with the president in person to negotiate tariffs after Trump’s sweeping announcement last week.
