The U.S. administration is promising a more generous approach to trade policies, despite recent hints from President Trump about possibly reducing planned tariffs. White House economics adviser Kevin Hassett stated that the tariffs would target 10 to 15 countries with the largest trade deficits with the U.S., although he did not specify which countries would be affected.
President Trump views tariffs as a way to shield the U.S. economy from unfair competition and as a tool to negotiate better trade terms. However, this approach has raised concerns of a trade war, causing jitters in the financial markets. Asian markets reacted negatively, with Japan’s Nikkei 225 index dropping by 4%, Hong Kong’s Hang Seng down by 1.6%, and South Korea’s Kospi falling by about 2.5%.
Trump’s advisers have been vocal about the potential benefits of these tariffs, claiming they could generate trillions of dollars and create millions of jobs in the U.S. Pete Navarro, a top trade adviser, suggested that tariffs on car imports alone could bring in $100 billion each year. He also estimated that all proposed tariffs could yield $600 billion annually, which is about one-fifth of the total value of goods imported into the U.S. A recent White House fact sheet claimed that a 10% tariff on all imports could lead to nearly 3 million new jobs.
These developments heighten the stakes for countries looking to negotiate trade deals with the U.S., including the United Kingdom. Meanwhile, the European Union and Canada are preparing to respond with their own trade measures if necessary.
In a separate issue, President Trump stated that a deal regarding TikTok, owned by China’s ByteDance, should be finalized by Saturday. He set a deadline for the app to find a non-Chinese buyer or face a ban in the U.S. due to national security concerns. This deadline was initially established in January and was meant to comply with legislation passed during the Biden administration.