Trump has described his tariffs as “medicine” and warned countries would have to give substantial payouts to the US to see them changed, as financial markets plunged around the world.
US President Donald Trump has defended his sweeping tariff policy, telling foreign governments they must pay “substantial fees” to see the duties lifted. He described the tariffs as necessary “medicine” despite causing significant disruption across global financial markets.
Asian markets dropped broadly while US stock futures traded significantly lower as investors grew concerned that Trump’s tariffs could trigger inflation, reduce consumer demand and potentially lead to a global economic downturn.
When speaking to journalists on Air Force One on Sunday, Trump showed little worry about the market losses that have already eliminated trillions in global equity value.
“I don’t want anything to go down. But sometimes you have to take medicine to fix something,” he said.
Trump mentioned weekend conversations with European and Asian leaders who are seeking reductions to tariffs — some as high as 50% — scheduled to take effect this week.
“They are approaching the negotiating table. They want discussions but no talks will proceed unless they commit to substantial annual payments,” said Trump.
Last week’s tariff announcements drew confused criticism from world leaders and prompted retaliatory measures from China, the world’s second-largest economy.
Billionaire investor Bill Ackman, who supported Trump’s presidential campaign, urged for the tariffs to be suspended to prevent an “economic nuclear war”.
Both investors and political officials remain uncertain whether Trump’s tariffs represent a permanent policy shift or a negotiation strategy to extract concessions from trading partners.
During Sunday morning television appearances, Trump’s chief economic advisers characterised the tariffs as a strategic repositioning of the US in global trade. Treasury Secretary Scott Bessent claimed over 50 nations had initiated negotiations since last Wednesday’s announcement, while Commerce Secretary Howard Lutnick indicated the tariffs would remain effective “for days and weeks”.
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