Mon Apr 07 02:13:42 UTC 2025: ## Trump Defends Tariffs Amidst Global Market Meltdown

**New York, NY** – President Trump doubled down on his sweeping new tariffs Sunday, dismissing the ensuing global market panic as a necessary “medicine” for the US economy. His comments followed a massive sell-off in global stocks, wiping out trillions in market value and raising fears of a global recession.

Asian markets were particularly hard hit Monday, with significant drops in major indices including Taiwan’s TAIEX (-10%), Hong Kong’s Hang Seng (-10%), Japan’s Nikkei 225 (-9%), Singapore’s Straits Times Index (-7%), South Korea’s KOSPI (-5%), and Australia’s ASX 200 (-6%). US futures also pointed to substantial losses when Wall Street reopens.

The President, speaking aboard Air Force One, insisted that the tariffs are a response to unfair trade practices by other countries, stating that previous administrations allowed the US to be “treated so badly.” He further declared he would not back down unless other nations balanced their trade deficits with the US. Trump claimed to have spoken with numerous foreign leaders eager to negotiate, asserting, “We’re not going to have deficits with your country.”

The new tariffs, which began at a 10% baseline Sunday, will rise to between 11% and 50% on Wednesday, impacting major US trading partners including China (34% tariff), the European Union (20-26%), Japan, and South Korea (20-26%). China has already retaliated with its own tariffs and export restrictions. While some allies like the UK, Australia, Indonesia, and Taiwan have refrained from immediate countermeasures, the escalating trade war fuels concerns of a global economic downturn.

Analysts are increasingly pessimistic. JPMorgan Chase now estimates a 60% chance of a US recession within the next year, while S&P Global puts the probability at 30-35%. Despite the market turmoil, Treasury Secretary Scott Bessent downplayed recession risks on Sunday, asserting that the Trump administration is focused on long-term economic fundamentals. However, the ongoing market chaos suggests a significant challenge to that claim.

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