Trump Softens Stance on Tariffs amid Market Volatility

Tuesday 01 April 2025 - 09:10

By: Zahouani Ilham

Trump Softens Stance on Tariffs amid Market Volatility

U.S. President Donald Trump has announced that his upcoming reciprocal tariffs will be lower than those imposed by other countries, aiming to ease concerns in global markets.

Speaking at the White House, Trump emphasized that his trade measures, set for announcement on Wednesday, will be “kinder” compared to those of U.S. trading partners. He assured that the imposed tariffs would be significantly lower in some cases. Trump reiterated his belief that the U.S. has been treated unfairly in trade, asserting that these measures will restore economic strength to the nation.

Despite previous speculation that tariffs would target only specific nations, Trump clarified they would apply universally. Experts remain uncertain about the final details, as his administration continues to send mixed signals.

Dubbed “liberation day,” Trump’s April 2 tariff announcement is part of a broader trade strategy, including 25% duties on Canada, Mexico, and auto imports, alongside existing tariffs on Chinese goods, aluminum, and steel.

U.S. stocks reacted with mixed results following sharp declines in Asian markets. While some indices recovered slightly, concerns persist over how these measures will impact global supply chains and consumer prices.

Trump’s administration has identified key trade partners contributing to the U.S. trade deficit. Treasury officials have indicated that specific countries imposing high tariffs and non-tariff barriers are under scrutiny, though no names were officially disclosed. However, reports suggest China, the EU, Canada, and Japan are among the primary concerns.

While Trump argues that these tariffs will stimulate domestic manufacturing and job creation, many economists warn of potential disruptions in supply chains and rising costs for consumers. The measures have already strained relations with key allies, prompting calls from European leaders for greater economic independence.