US stock markets plunged on Sunday after news of new US tariffs. President Trump and his administration said that markets may need to “take medicine”. Trump also noted that tariffs are “already in effect, and a beautiful thing to behold.”
Trump Says Markets May Have to “Take Medicine”
While there certainly are mixed reviews of Trump’s economic plans, his administration stands by Trumps decisions. Commerce Secretary Howard Lutnick firmly believes tariffs are a good path forward. Lutnick said that tariffs “are definitely going to stay in place for days and weeks.” Scott Bessent, Treasury Secretary said that he does not expect a recession to occur due to these tariffs. Additionally, economic adviser on the Trump administration Kevin Hassett stated that Trump is not trying to purposely tank the stock market.
On April 2nd, Trump made the major announcement of large tariffs. There is a 10% tariff on all imports. Trump also put on additional tariffs on the “worst offenders”, or those who Trump believes to have been unfair in trade with the US. After the President announced these tariffs, the US stock market experienced its worst week since 2020. The rest of the world, however, is still deciding on how to respond. China has announced counter tariffs reaching 34% on US goods. Canada announced auto tariffs against US vehicles. Many economists are awaiting how the European Union will respond. Experts expect the EU to implement retaliatory tariffs. Elon Musk, a Trump adviser said “Europe and the United States should move, ideally, in my view, to a zero-tariff situation.”
These tariffs certainly have rocked the economic world of many prominent individuals. Kelly Ann Shaw, former Trump adviser said “this is the single biggest trade action of our lifetime.” While retaliatory tariffs are likely going to continue, many US consumers brace for a potential recession. While experts disagree on the economic future, many are growing more pessimistic. With growing tariffs, consumers will have less spending power overall. While it’s tough to say what exactly will happen, it’s safe to say that many are getting worried.
Featured Image Credit: D’Vaughn Bell; Pexels: Thank You!
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