US President Defends Tariffs, Says They Could Multiply
WASHINGTON: US President Donald Trump defended his use of tariffs and said they could multiply as he met on Tuesday with the CEOs of America’s biggest companies, many of whom have watched their market value crater over recession and inflation fears.
The Republican president spoke to about 100 CEOs at a regular meeting of the Business Roundtable, which includes the heads of Apple, JPMorgan Chase and Walmart. The event followed a private Trump meeting with technology company executives at the White House on Monday.
Tariffs and the Economy
US stocks on Tuesday extended a selloff that has dragged the benchmark S&P 500 down 5.3% so far in 2025, with investors rattled over increased tariffs on imports and souring consumer sentiment. Monday’s drop in the S&P 500 was its largest this year and followed an interview over the weekend in which Trump declined to rule out a recession resulting from his trade policies.
He clarified those comments on Tuesday, telling reporters, "I don’t see it at all," regarding the possibility of a recession.
Volatile Markets
"Markets are going to go up and they’re going to go down, but you know what? We have to rebuild our country," Trump told reporters before he met the business leaders.
For much of his political career, Trump has talked up the importance of the stock market. During his first 2017-2021 term in office he regularly pointed to rallying stock prices as proof of his success and in both his 2020 and 2024 campaigns warned that markets could tumble if he lost.
Tariffs and Trade
Trump’s economic policies so far have centred on a blitz of tariff announcements. Some have taken effect and others have been delayed or are set to kick in later. He said they will correct unbalanced trade and stop the flow of illegal narcotics from abroad.
Trump started Tuesday by ramping up a burgeoning trade war with Canada, vowing to double tariffs set to take effect within hours on all imported steel and aluminum products from America’s northern neighbor to 50%. The White House later said the tariff would remain at 25% after Canadian officials agreed to talks.
Economic Consequences
Markets worry that tariffs could raise prices for businesses, boost inflation and undermine consumer confidence in a blow to economic growth. It has also raised investor speculation that Trump’s ambition will not be bound by the preferences of big business.
The White House has dismissed this thinking, which is shared by most economists, who view trade wars as a lose-lose proposition for the countries involved. Trump aides say the tariff threats will force companies to invest more in the US.
Conclusion
The future of the global economy remains uncertain, with many predicting a recession and others believing that the economy will continue to grow. Only time will tell if Trump’s economic policies will have the desired effect, but one thing is certain: the world is watching with bated breath as the drama unfolds.
FAQs
Q: What is the current state of the global economy?
A: The global economy is experiencing a slump, with many predicting a recession on the horizon.
Q: What are the causes of the economic downturn?
A: The economic downturn is attributed to a number of factors, including increased tariffs, inflation, and a decrease in consumer confidence.
Q: What is the impact of Trump’s economic policies on the economy?
A: The impact of Trump’s economic policies on the economy is still uncertain, but many predict that they will have a negative effect on the global economy.