US President Trump: Tariffs Are "Medicine" for Long-Term Trade Imbalance

Washington (The Uttam Hindu): US President Donald Trump defended his controversial tariff policies on Monday amid a decline in global markets, especially Asian stock markets. He said that world leaders are "desperate to reach a compromise" on "reciprocal tariffs". Asian markets started the day with a sharp decline on Monday. However, Trump tried to ease fears and suggested that the market hit caused by his tariffs was a necessary 'medicine' to fix the long-term trade imbalance. Referring to the market volatility, Trump said, "Sometimes you have to take medicine to fix something." Speaking to reporters on Air Force One, the US President said he was in touch with world leaders over the weekend. He claimed that many countries want to reach a deal.

Despite heavy losses in global markets, the Trump administration has shown no signs of backing down from its aggressive tariff strategy. "I can't tell you what will happen to the markets. But our country is much stronger," Trump said, according to media reports. Meanwhile, China notably announced retaliatory measures in response to Trump's tariffs, raising concerns of an escalation of the trade war. Economists warned that if the US continues on its current path, the global economy could face a severe recession. JPMorgan chief economist Bruce Kasman put the risk of recession at 60 per cent. Experts are comparing the turmoil in the markets to the 1987 'Black Monday' crash, when global markets lost $1.71 trillion in a single day. CNBC's Jim Cramer warned that if Trump's trade policies continue, markets face a similar catastrophic event. As markets gear up for another volatile week, all eyes are on the White House and the next steps in the ongoing trade conflict.