According to France24, President Donald Trump admitted that the imposition of new tariffs is causing "costs and transition problems" as the global market is in a state of instability. However, he still affirmed that this is a necessary step to reshape the world economic order.
Speaking on April 10, Mr. Trump said that the European Union (EU) has temporarily suspended its retaliatory plan after witnessing his tough stance. They were ready to announce response measures, but then they decided to temporarily postpone it, he said.
The surprising development is that the global financial market immediately reacted negatively to Mr. Trump's tariff decisions.
After soaring 9.5% on April 9, the US S&P 500 unexpectedly fell to 3.5% in the trading session on April 10. Dow Jones lost 2.5% and Nasdaq decreased 4.3%.
In Asia, Japan's Nikkei index lost more than 5% on the morning of April 11, while the Seoul and Sydney markets also fell simultaneously.
Oil and USD prices fell due to concerns about a global recession, while gold prices hit a new record and the Japanese yen increased in value as a safe-haven asset.
However, Mr. Trump still believes that the tariff strategy will help force manufacturers to return to set up domestic production facilities, while urging other countries to reduce trade barriers. "In the end, it would be a great thing," he said.
On April 9, Mr. Trump postponed the 20% tax rate on the EU and higher rates on other partners for 90% for Japan.
The EU welcomed the decision and also postponed a 20-billion-dong package of tariffs on US goods for 90 days. However, European Commission President Ursula von der Leyen warned that the EU will still have many measures to react if negotiations fail, including taxing advertising revenue of digital platforms across the bloc.
Mr. Trump warned that if the negotiations do not achieve the desired results, the tariffs will be reimposed after the 9-day deadline.
