Economy

Over 50 nations request US trade talks after tariffs

Monday 07 April 2025 - 10:30

By: Zahouani Ilham

Over 50 nations request US trade talks after tariffs

More than 50 countries have reached out to the White House seeking to open trade negotiations following President Donald Trump’s sweeping tariffs, according to senior administration officials.

The newly imposed tariffs, which wiped nearly $6 trillion off US stock markets last week and shook global financial systems, have sparked widespread alarm and fears of an impending economic slowdown. However, the Trump administration has downplayed the risks, insisting that the long-term benefits will outweigh any short-term disruptions.

As global markets braced for further volatility, investors awaited the reopening of US exchanges with caution. Asian markets were set to open amid growing uncertainty and potential instability.

In interviews across multiple Sunday news programs, Trump’s top economic advisors defended the tariffs, describing them as a calculated move to strengthen the US's position in global trade negotiations. Treasury Secretary Scott Bessent confirmed that more than 50 countries had initiated discussions with Washington since the announcement, although he did not name any specific countries.

Bessent asserted that the tariffs provided President Trump with critical leverage, dismissing concerns of a looming recession. He pointed instead to robust job growth figures as evidence of continued economic strength.

The tariffs officially went into effect on Saturday, marking a significant shift away from the post-World War II model of multilateral trade agreements. A 10% baseline tariff is now being enforced at ports, airports, and customs hubs across the country.

Despite government assurances, economic analysts remain skeptical. JPMorgan economists have already revised their US GDP forecast, reducing it from a projected 1.3% growth to a 0.3% contraction.

Designed to pressure foreign governments into making trade concessions, the US tariffs have sparked retaliatory measures, particularly from China, raising concerns over a potential global trade war.

Several allies of the US—including Taiwan, Israel, India, and Italy—have expressed interest in negotiating to avoid the penalties. Taiwan’s leader Lai Ching-te proposed zero tariffs as a starting point, while Israeli Prime Minister Benjamin Netanyahu requested exemption from a 17% tariff on Israeli exports.

Meanwhile, Washington is preparing to impose even steeper “reciprocal” tariffs starting Wednesday.

Some critics have questioned the method used to apply the tariffs, especially in cases where they were extended to isolated and uninhabited territories. Commerce Secretary Howard Lutnick defended the approach, arguing it was designed to close loopholes and prevent tariff evasion.