Mon Apr 07 08:20:00 UTC 2025: **Trump Defends New Tariffs Amid Market Turmoil**
WASHINGTON – President Donald Trump defended his sweeping new tariffs on Sunday, insisting he won’t negotiate with China until the massive trade deficit is addressed. Speaking aboard Air Force One, Trump reiterated his stance that the over $1 trillion trade deficit with China is unacceptable and must be resolved before any trade deals can be made. He claimed the tariffs, which include a 34% reciprocal tariff on Chinese goods in addition to a 10% baseline tariff on all imported goods, will generate an extra $1 trillion in revenue by next year and attract $7 trillion in domestic investment.
The tariffs, dubbed “Liberation Day” tariffs, have already sent shockwaves through global markets. While Trump asserted that many other countries are eager to negotiate, he remains firm in his refusal to compromise on the deficit issue. He stated that the US will aim for trade surpluses or at least break-even scenarios, characterizing deficits as unacceptable losses.
While Canada and Mexico currently have exemptions from reciprocal tariffs, they face significant tariffs on specific goods (25% and 10% respectively). Both countries have pledged to respond accordingly. Other key trading partners, including the European Union and Britain, are also preparing countermeasures.
Despite market uncertainty, Trump expressed confidence in the long-term economic benefits of his policies, predicting the US will become the world’s most dominant economy. He further defended the tariffs on Truth Social, claiming they are bringing billions of dollars into the US and will quickly reverse the trade surpluses seen under the Biden administration. The President’s comments follow numerous questions from reporters regarding the impact of his trade policies on global markets.
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