U.S. Treasury Secretary Scott Bessent said Sunday there is no reason to expect a recession due to President Donald Trump's recent tariffs, despite major market losses last week. He also stated more than 50 nations have contacted the U.S. to start trade negotiations since Trump's tariff announcement.
The remarks come after U.S. markets saw their biggest losses since the early days of the COVID-19 pandemic five years ago. The S&P 1500 Composite Index lost nearly $6 trillion in just two days following Trump's decision to impose sweeping tariffs.
Speaking on NBC News' "Meet the Press," Bessent downplayed worries about economic damage. He pointed to recent strong job numbers, arguing these show the economy remains stable. "We could see from the jobs number on Friday, that was well above expectations, that we are moving forward," Bessent explained. "So I see no reason that we have to price in a recession."
President Trump's new tariffs, announced last Wednesday, were broader and more severe than markets had expected. This sparked immediate backlash from China, which retaliated with tariffs of its own, increasing fears of a global trade war.
Market Turmoil and Economic Concerns
The new tariff policy caused significant concern among investors and economists. In just two trading days after the announcement, U.S. stocks dropped about 10%. Experts blamed Trump's tariffs for triggering market fears and warned of potential economic damage. JPMorgan economists now predict the U.S. economy will shrink by 0.3% for the year, down sharply from earlier forecasts of 1.3% growth. They also expect unemployment to rise from 4.2% to 5.3%.
Despite these concerns, Trump's economic team appeared unified in defending the tariffs. National Economic Council Director Kevin Hassett, speaking on ABC News' "This Week," denied suggestions that the tariffs were aimed at forcing the Federal Reserve to lower interest rates. He insisted there would be no "political coercion" of the central bank.
However, Trump himself raised eyebrows on Friday by sharing a video on Truth Social. The video hinted that the president may have intentionally targeted stock markets to pressure the Fed into rate cuts. This post increased speculation over whether Trump's tariffs were temporary tactics or a long-term economic strategy.
Negotiations With Over 50 Countries
Bessent emphasized that more than 50 countries had contacted the U.S. government to begin trade talks. He said this places Trump in a strong negotiating position, though no specific countries were named. Managing negotiations with so many countries at once, however, could be logistically challenging and time-consuming.
Taiwan quickly responded by offering zero tariffs and pledging more investment in the U.S. Taiwanese President Lai Ching-te announced the willingness to eliminate trade barriers, highlighting the immediate impact Trump's tariff policies have had internationally.
Commerce Secretary Howard Lutnick echoed these statements, speaking on CBS News' "Face the Nation." He suggested that Trump's aggressive tariffs might not last long, potentially only remaining for days or weeks. Lutnick said reciprocal tariffs from other countries would start from April 9, as planned.
Scrutiny Over Tariff Implementation
The tariffs faced additional scrutiny due to their broad implementation. Even uninhabited Antarctic islands were included in Trump's global tariffs, prompting questions about their effectiveness and practicality.
Lutnick defended this comprehensive approach. He explained it was necessary to prevent larger countries from avoiding tariffs by shipping goods through smaller, less-regulated regions. "Basically [Trump] said, 'I can't let any part of the world be a place where China or other countries can ship through them,'" Lutnick stated clearly.
Elon Musk's Position
Tesla CEO and billionaire Elon Musk, who advises President Trump, expressed hopes for completely free trade between the U.S. and Europe in the future. Despite Musk’s differing view, Trump trade adviser Peter Navarro downplayed any disagreement. Speaking on Fox News' "Sunday Morning Futures," Navarro said Musk was simply looking out for his company's interests and denied any rift.
Trump's tariffs continue to draw intense global interest, with markets poised for another uncertain week. Investors remain concerned about whether these policies will push the global economy into deeper trouble or provide Trump with leverage in future trade negotiations.
Keywords: trump tariffs, stock market losses, global trade negotiations, recession fears, u.s. economy, tariff impact, trade wars, economic policy, treasury secretary, market turmoil