President Donald Trump remained optimistic about the U.S. economy, even as the stock market experienced a significant drop following his tariff announcement. The Dow Jones Industrial Average plummeted by more than 1,600 points on Thursday, leading to a global selloff. This marked one of the steepest declines in recent years, reminiscent of the turmoil during the COVID-19 pandemic.
Trump also expressed confidence about the future, predicting that the market would recover, stating, “The markets are going to boom, the stock is going to boom, the country is going to boom,” according to the Associated Press.
Trump’s tariff announcement on Wednesday included a minimum 10 per cent tariff on imports, with higher rates for certain countries, including China and European Union members. The move caused immediate market shockwaves, but Trump suggested this reaction was expected.
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According to the Associated Press, Trump compared the situation to a patient undergoing surgery, saying, "I think it’s going very well. We have an operation, like when a patient gets operated on, and it’s a big thing. I said this would exactly be the way it is," in an apparent reference to the selloff.
While the market’s sharp fall was concerning to many, Trump emphasized that it was a necessary step toward correcting long-standing trade imbalances. He pointed to trillions of dollars in investments coming into the U.S. as businesses seek to manufacture domestically to avoid tariffs.
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The report stated that during a conversation with reporters aboard Air Force One, Trump said he would be open to using tariffs as leverage in negotiations with other countries, but only if they offered something “phenomenal” in return. He maintains that other countries have been taking advantage of the U.S. for years, and he is determined to put a stop to it.
Trump emphasized that for many years, the U.S. had been on the losing side of trade, but he expressed confidence that the situation would improve significantly going forward, especially with the new tariff measures in place.
As Trump’s tariff measures impose a range of rates, with Cambodia facing the highest at 49 per cent. Vietnam follows closely with a 46 per cent tariff, while India faces a 26 per cent levy. China will be subject to a 34 per cent tariff, and South Korea’s imports will incur a 25 per cent tax. The European Union is set for a 20 per cent tariff, and the United Kingdom will face a 10 per cent rate.
