Ignoring the plunge in U.S. stocks, Trump insists on tariffs: The whole world wants to negotiate agreements with us, and America will prosper
Former U.S. President Donald Trump insisted that his global tariff plan would lead to American prosperity despite the sharp decline in U.S. stocks. He stated that countries around the world are eager to reach agreements with the U.S. and mentioned nearly $7 trillion in investment commitments. Trump's tariff plan includes imposing tariffs of 10% to 50% on over 100 countries, resulting in a significant drop in U.S. stocks, with the three major indices falling nearly 4%. The U.S. Secretary of Commerce indicated that the Trump administration is unlikely to abandon its tariff policy
Despite the sharp decline in U.S. stocks, President Trump still believes that the global tariff plan he announced on Wednesday has received a good response, insisting that "America will prosper."
During the midday trading session on April 3rd, Eastern Time, Trump stated at the White House when asked by reporters about the market reaction:
"I think things are going very well. You've never seen anything like this. The market will prosper. The stock market will prosper. The country will prosper."
Trump said, "The rest of the world wants to know if they can reach an agreement?" He also mentioned commitments from some companies to invest in the U.S. in recent weeks, claiming that the total amount of promised investments is close to $7 trillion. "You will see how it turns out. Our country will prosper," he said.
The day before Trump's remarks, according to Xinhua News Agency, on April 2nd, Trump signed two executive orders regarding so-called "reciprocal tariffs" at the White House, announcing a 10% "minimum baseline tariff" on trade partners and higher tariffs on certain trade partners. According to CCTV, a White House statement said that the 10% "baseline tariff" on all countries will take effect at 12:01 AM Eastern Time on April 5th, and the higher reciprocal tariffs on countries with significant trade deficits with the U.S. will take effect at 12:01 AM Eastern Time on April 9th.
According to charts released by the White House, the U.S. will impose tariffs of at least 10% and up to 50% on more than 100 countries and regions, with a 20% tariff on EU goods, a 24% tariff on Japanese goods, and a 25% tariff on South Korean goods.
The tariff plan announced by Trump far exceeded market expectations, leading to a sharp decline in U.S. stock index futures after the announcement on Wednesday. On Thursday, the three major U.S. stock indices fell nearly 4% at one point during the session, with the Dow Jones Industrial Average dropping over 1,600 points, down about 3.8%, the S&P 500 index down 4.5%, and the Nasdaq down over 5.8%. The small-cap index Russell 2000 fell more than 6.6% at one point, dropping over 20% from its record high set in late November 2024, becoming the first major U.S. stock index to enter a bear market.
On the day of Trump's speech, U.S. Secretary of Commerce Wilbur Ross stated that it is unlikely that the Trump administration will reconsider its trade policies. He said:
"I think it's impossible—President Trump will not abandon his tariffs. This is a reordering of global trade, right? That's what's going to happen."
Ross believes that the tariffs announced by Trump will begin to trigger a "reordering" of global trade, forcing other countries to open their markets to more American goods. Ross said:
"This is a reordering of fair trade, concerning those non-tariff trade barriers. That's the issue we are addressing."
"I expect that most countries will start to really examine their trade policies with the U.S. and will no longer be picky with us." He cited an example, saying that the U.S. should no longer say it cannot sell corn to India or beef anywhere. "It just shouldn't be so unfair to us anymore."
Lutnik acknowledged that negotiations between the U.S. and various countries are not impossible. He stated that countries can address their tariff and non-tariff trade barrier issues with the U.S., which are much stricter. The U.S. must no longer be exploited. "You will see America prospering. And only then will Donald Trump make deals with every country when they truly change their practices. Then they will sit down with him."
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