Trump calls tariffs 'very beautiful thing' as markets continue collapsing
What's the story
United States President Donald Trump has defended his recent tariff hikes, calling it a "beautiful thing," despite the economic turmoil they have caused.
The president reiterated that these tariffs are necessary for curbing America's financial deficits with China and the European Union.
He also accused former President Joe Biden of increasing trade deficits during his time in office, which Trump aims to reverse.
Trade impact
Tariff hikes and their economic implications
On April 2, Trump imposed a blanket 10% import duty on all goods coming into the US, with higher rates on 57 select trading partners, including China, Canada, and Mexico.
This was an effort to rework US trade relationships and ostensibly bring life into US industries.
However, critics say these tariffs could increase prices for consumers, cause potential job losses in import-dependent industries, and strain relations with key partners.
Global fallout
Market reactions and international response
Asian markets plunged, and US futures pointed to steep losses on Wall Street, all due to Trump's tariffs.
In retaliation for the escalating trade war, China said it would impose retaliatory tariffs of 34% on all US goods from April 10.
Despite the market chaos, Trump maintained he couldn't have predicted such reactions and wouldn't negotiate with other countries unless trade deficits were fixed.
Diplomatic efforts
Calls for negotiations amid escalating trade tensions
Israeli PM Benjamin Netanyahu is scheduled to meet Trump on Monday to discuss the tariffs, which have hit Israel despite its close alliance with Washington.
Britain's PM Keir Starmer warned in a newspaper op-ed that "the world as we knew it has gone," and future relations would increasingly depend on "deals and alliances."
More than 50 countries have called on the US President for negotiations, said Kevin Hassett, head of the White House National Economic Council.