News/Commentary

Trump floats expanding scope of his tariffs: ‘The markets are going to learn, let the dealmaker make his deals’

March 31, 2025 | | Print Article

The nearing deadline for “Liberation Day” includes added market waves as reports circulate about a vastly expanded scope of the president’s tariffs, potentially hitting all global imports.

Since returning to the White House, President Donald Trump has remained laser-focused on righting the economy in conjunction with reasserting American dominance on the global stage. Toward that end, his use of tariffs in negotiations is coming to a head with an April 2 deadline that has triggered stock dives around the world over concerns of a possible 20% tariff.

According to a report from the Wall Street Journal, advisers within the White House have bandied about the idea of an across-the-board tariff on all U.S. trading partners instead of the planned reciprocal tariffs

The uncertainty of what may come and how it will play out appears to have had a dramatic impact on global markets as Japan’s Nikkei has dropped by about 4% while indexes in Europe, along with the futures for the S&P 500 and Nasdaq, have fallen around 1% at the time of this post. Similarly, South Korea’s KOSPI has fallen by 3% while Taiwan’s TAIEX has surpassed a 4% drop and Australia’s S&P/ASX 200 has neared a 2% dip at its lowest point on Monday.

“For the first time in years, we find ourselves genuinely worried about risk assets,” Barclays head of rates markets Ajay Rajadhyaksha told Reuters as talk of a recession increased. “If policy chaos and trade wars worsen much further, a recession is now a realistic risk across major economies. For the first time in many quarters, we favour core fixed income over global equities.”

A fact sheet released by the White House Wednesday made note of a 2024 economic analysis that suggested “a global tariff of 10% would grow the economy by $728 billion, create 2.8 million jobs, and increase real household incomes by 5.7%.”

Previously, while the president has cautioned about a “period of transition” that would take “a little time,” Commerce Secretary Howard Lutnick told CBS News White House correspondent Nancy Cordes amid stock market fluctuations that “even a short-term recession” would be “worth it” in achieving Trump’s economic endgame.

“The markets are going to learn, let the dealmaker make his deals,” he said. “When you’re negotiating with someone and they’re not paying attention, and they’re disagreeing, the president — who’s the best dealmaker ever to sit in that chair — is going to say, ‘Here’s my response.’ And then all of a sudden, shockingly, they respond.”

Trump addressed the reciprocal tariffs aboard Air Force One Sunday and told the press, “The tariffs will be far more generous than those countries were to us, meaning, they will be kinder than those countries were to the United States of America over the decades.”

“They’ve ripped us off like no country’s ever been ripped off in history, and we’re gonna be much nicer than they were to us. But, it’s substantial money for the country, nevertheless.”

While a report from Politico sowed the seeds of discord in the White House, citing one ally “close to Trump’s inner circle” who argued “No one knows what the f*ck is going on,” National Economic Council Chair Kevin Hassett said on Fox News’ “Sunday Morning Futures,” “I think the naysayers will be proven wrong if they’re a little bit nervous about the blips from this week to next.”

To that point, American auto workers are already praising the president’s actions as they look ahead to the impact decisions such as a 25% tariff on all vehicles and automotive parts will have on their industry.

“We applaud the Trump administration for stepping up to end the free trade disaster that has devastated working class communities for decades,” read a statement from United Auto Workers President Shawn Fain. “Ending the race to the bottom in the auto industry starts with fixing our broken trade deals, and the Trump administration has made history with today’s actions. These tariffs are a major step in the right direction for autoworkers and blue-collar communities across the country, and it is now on the automakers, from the Big Three to Volkswagen and beyond, to bring back good union jobs to the U.S.”

Kevin Haggerty
Latest posts by Kevin Haggerty (see all)

Comment

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the ∨ icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.

Latest Articles