More than 50 countries have contacted White House to start trade talks – Trump adviser
More than 50 countries have reached out to the White House to begin trade talks, the US national economic council director Kevin Hassett has told ABC News’ This Week programme. He said:
I got a report from the USTR last night (the office of the US trade representative) that more than 50 countries have reached out to the president to begin a negotiation.
But they are doing that because they understand that they bear a lot of the tariff.
And so I don’t think you will see a big effect on the consumer in the US because I do think that the reason why we have a persistent, long run trade deficit is these people have very inelastic supply.
They have been dumping goods into the country in order to create jobs say in China.
Hasset denied that the tariffs were part of a strategy by Trump to crash financial markets to pressure the US federal reserve to cut interest rates, insisting there were would be no “political coercion” of the central bank.
As we have been reporting throughout the day, goods imported from dozens of countries and territories are now going to be taxed at sharply higher rates, and that is expected to drive up the costs of everything from cars to clothes to computers.
These tariffs – which can run as high as 50% – are meant to punish countries for trade barriers that Trump says unfairly limit US exports and cause it to run huge trade deficits.
It is unclear whether the tariffs will be long lasting or if Washington will lower or drop them in response to other countries negotiating to reduce their own tariffs and other trade barriers.
US retail giants predicted that prices were “highly likely” to start rising for US almost immediately after a 25% duty came into effect on exports from Mexico to the US.
Americans have been warned to brace for higher prices more generally too, with households fearing a recession in the future and higher inflation because of tariffs.
Trump’s team has said any short term shock to the economy will be worth the net positives of the tariffs, which the US president claims will help bring manufacturing back to the states and boost tax revenues.
Key events
My colleague Edward Helmore has written a story about how recession fears are mounting in America in the wake of Trump’s tariff announcement last week. Here is an extract from his piece:
JP Morgan analysts last week boosted their odds on a global recession to 60% and Americans are bracing for a return of inflation – the thing that above all else likely doomed Trump’s predecessor, Joe Biden…
On the streets of New York there was panic among some. In Washington Square Park, two sisters from Detroit were sitting on a park bench nearby the magnolia trees now in bloom. Kathleen, a primary school teacher, said she worried about whether there was a plan in place before changes are made.
“I want to be optimistic, but I live under an umbrella of worry with this administration,” Kathleen said. “I worry about the leadership, worry about a lack of continuity within the leadership, and so many changes at once without a plan.”
Her sister, Elizabeth, said she’d grown so anxious she’d stepped back from the news. “Our mum definitely had a huge jump in anxiety over this past week over her investments. She worked hard for those and she lives on them – a retired schoolteacher, and the drop in stocks very much impacts her day-to-day feeling of security.”
More than 50 countries have contacted White House to start trade talks – Trump adviser
More than 50 countries have reached out to the White House to begin trade talks, the US national economic council director Kevin Hassett has told ABC News’ This Week programme. He said:
I got a report from the USTR last night (the office of the US trade representative) that more than 50 countries have reached out to the president to begin a negotiation.
But they are doing that because they understand that they bear a lot of the tariff.
And so I don’t think you will see a big effect on the consumer in the US because I do think that the reason why we have a persistent, long run trade deficit is these people have very inelastic supply.
They have been dumping goods into the country in order to create jobs say in China.
Hasset denied that the tariffs were part of a strategy by Trump to crash financial markets to pressure the US federal reserve to cut interest rates, insisting there were would be no “political coercion” of the central bank.
As we have been reporting throughout the day, goods imported from dozens of countries and territories are now going to be taxed at sharply higher rates, and that is expected to drive up the costs of everything from cars to clothes to computers.
These tariffs – which can run as high as 50% – are meant to punish countries for trade barriers that Trump says unfairly limit US exports and cause it to run huge trade deficits.
It is unclear whether the tariffs will be long lasting or if Washington will lower or drop them in response to other countries negotiating to reduce their own tariffs and other trade barriers.
US retail giants predicted that prices were “highly likely” to start rising for US almost immediately after a 25% duty came into effect on exports from Mexico to the US.
Americans have been warned to brace for higher prices more generally too, with households fearing a recession in the future and higher inflation because of tariffs.
Trump’s team has said any short term shock to the economy will be worth the net positives of the tariffs, which the US president claims will help bring manufacturing back to the states and boost tax revenues.
Summary of the day so far…
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Donald Trump’s 10% tariff on all imports from many countries, including the UK, has come into force. It will likely push up prices for consumers around the world. Some countries are facing additional levies on imports.
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Some of the highest tariffs will be put on imports from Asian countries, including China, India, South Korea and Japan. EU exports will also have a 20% tariff.
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World leaders are mulling over how best to respond to the sweeping tariffs, which risk sparking a global trade war and recession.
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Indonesia and Taiwan said on Sunday they won’t impose retaliatory tariffs while Israeli prime minister Benjamin Netanyahu is heading to Washington to meet Trump to try to get the president to lower his levies.
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Vietnam’s leader has reportedly requested a delay of “at least 45 days” to tariffs due to be imposed on Wednesday (Trump has slapped a 46% duty on Vietnamese goods coming into the US – the sixth-highest rate announced last week).
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India also does not plan to retaliate against Trump’s 26% tariff on its exports into the US, according to reports.
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The EU is likely to approve its first set of targeted countermeasures on up to $28bn (£21.7bn; €25bn) of US imports in the coming days.
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In the UK, which has been hit by Trump’s 10% “baseline” tariff, Keir Starmer said he’s ready to use industrial policy to “shelter British business from the storm”. “Old assumptions can no longer be taken for granted. The world as we knew it has gone. We must rise to meet the moment,” the prime minister said. Darren Jones, chief secretary to the Treasury, said the era of globalisation as we knew it has “come to an end” in the wake of the new tariffs.
Edward Helmore
Ted Cruz, the US senator from Texas, has warned that his fellow Republicans risk a “bloodbath” in the 2026 midterm elections if Donald Trump’s “liberation day” tariffs cause a recession.
Cruz also warned that the president’s tariffs, if they stay in place for long and are met by global retaliation on American goods, could trigger a full-blown trade war that “would destroy jobs here at home, and do real damage to the US economy”.
“A hundred years ago, the US economy didn’t have the leverage to have the kind of impact we do now. But I worry, there are voices within the administration that want to see these tariffs continue for ever and ever,” he added.
The Texan’s comments, made on his Verdict podcast on Friday, were a further sign that the imposition of global “reciprocal” duties on imported goods is causing unease among Republicans.
The Republican US senator Chuck Grassley of Iowa introduced bipartisan legislation on Thursday to grant Congress more power over placing tariffs on US trading nations. The bill, co-sponsored by the Democratic senator Maria Cantwell, would “reaffirm” the role of Congress in setting and approving trade policy.
You can read the full story here:
Crowds of people angry about the way Donald Trump is running the US rallied in scores of American cities on Saturday in the biggest day of demonstrations yet by an opposition movement.
The so-called “Hands Off!” demonstrations were held in more than 1,200 locations in all 50 states by more than 150 groups, including civil rights organizations, labor unions, LBGTQ+ advocates, veterans and elections activists.
Demonstrators voiced anger over the administration’s moves to fire thousands of federal workers, close social security administration field offices, effectively shutter entire agencies, deport immigrants, scale back protections for transgender people and cut funding for health programs.
Coming days after Trump’s tariff announcement, gatherings were also held outside the US, including in the European capital cities of London, Paris and Berlin, with many protestors there also expressing anger over the president’s new trade policies. Here are some pictures of the demonstrations:
India does not plan reciprocal tariffs – source
India does not plan to retaliate against Donald Trump’s 26% tariff on its exports into the US, an Indian government official told Reuters, citing ongoing talks for a deal between the countries.
Narendra Modi’s administration has looked into a clause of Trump’s tariff order that offers a possible reprieve for trading partners who “take significant steps to remedy non-reciprocal trade arrangements”, said the official, who declined to be named as the details of the talks are confidential.
New Delhi sees an advantage in being one of the first nations to have started talks over a trade deal with Washington, and is better placed than Asian peers like China, Vietnam, and Indonesia, which have been hit by higher US tariffs, a second government official told the news wire, also declining to be named.
While the US appears set to avoid reciprocal tariffs from India, Taiwan and Indonesia the response from the European Union could be very different as it discusses imposing extra duties on US goods this week. China has already imposed 34% retaliatory tariffs.
Heather Stewart
One of the most wilfully destructive aspects of Donald Trump’s shock and awe trade policy is the imposition of punitive tariffs on developing countries across Asia, including rates of 49% for Cambodia, 37% for Bangladesh, 48% for Laos.
For decades Washington had championed economic development through trade. Now, at the same time as slashing overseas aid budgets and retreating from its role in supporting developing nations, it is ripping up that idea entirely.
In its place, Trump intends to impose his will on the US’s trading partners. Some are all but powerless to exact concessions, given their small size, and dependence on the mighty American market.
Alice Oyaro, the chief executive at the charity Transform Trade, which works with producers in some of the worst-hit countries, says: “Our biggest concern is that the additional costs are pushed down to those in the supply chain who are least able to pay. Small farmers exporting everything from green beans to cocoa, and women workers in Bangladeshi factories are already finding it hard to make ends meet. They will see their incomes squeezed even more.”
You can read the full piece from our economics editor here
Vietnam seeks tariff delay
Vietnam’s leader has requested a delay of “at least 45 days” to tariffs due to be imposed by the United States on 9 April, according to a copy of a signed letter seen by Agence France-Presse, the wire service reported on Sunday.
The south-east Asian nation is facing 46% US tariffs, one of the highest levels imposed by Donald Trump.
To Lam called on Trump in the letter to assign a representative to work with Vietnam’s deputy prime minister, Ho Duc Phoc, on resolving the issue, adding that he hoped to meet Trump personally in Washington at the end of May.
Taiwan has ‘no plans’ for reciprocal tariffs, says president
Taiwan’s president has now said there are no plans for reciprocal trade tariffs against the US.
Reuters reports that the 32% tariffs on Taiwanese goods announced by Donald Trump do not apply to semiconductors, a major export for the country.
Meeting executives from small and medium-sized companies at his residence, the president, Lai Ching-te, said given Taiwan’s dependence on trade the economy would inevitably have a hard time dealing with the tariffs, but that he thought the impact could be minimised.
“In the face of the US ‘reciprocal tariffs’, Taiwan has no plans to take tariff retaliation, and there will be no change in the investment commitments of enterprises to the United States as long as they are in the national interest,” he said, in comments provided by his office.
Taiwan’s TSMC, the world’s largest contract chipmaker, last month announced an additional $100bn investment in the US.
Taiwan will now work to remove trade barriers and have other companies gradually increase their US investments. “In the future, in addition to TSMC’s increased investment, other industries, such as electronics, information and communications, petrochemicals, and natural gas will be able to increase investment in the US and deepen Taiwan-US industrial cooperation,” Lai said.
As we mentioned in an earlier post, Taiwan, for whom the US is the island’s most important international backer in the face of mounting Chinese pressure over Beijing’s sovereignty claims, has not announced any retaliatory tariffs.
But the country’s president, Lai Ching-te, said his government will remove trade barriers and Taiwanese companies will gradually increase their domestic investments. We will give you more information on this as we get it.
Taiwan, which faces a new 32% tariff rate from the US, has already announced T$88bn ($2.67bn; £2.1bn) in assistance for affected companies.
Taiwan runs a large trade surplus with the US. Taiwanese officials have repeatedly said trade with America has been skewed by strong demand for Taiwanese technology products, such as advanced semiconductors – a sector dominated by the island.
Musk says he hopes for a ‘zero-tariff situation’ between US and Europe
Elon Musk, who heads the so-called department of government efficiency as one of Donald Trump’s closest advisers, has said he hopes to see complete freedom of trade between the US and Europe.
The Tesla CEO and owner of X was speaking via video-link at a congress in Florence of Italy’s right-wing, co-ruling League Party on Saturday. He was being interviewed by Italy’s hard-line deputy prime minister Matteo Salvini.
“At the end of the day, I hope it’s agreed that both Europe and the United States should move ideally, in my view, to a zero tariff situation, effectively creating a free trade zone between Europe and North America,” the billionaire said.
“And more freedom for people to move between Europe and North America, if they wish,” Musk said, adding, “that has certainly been my advice to the president”.
Italian Prime Minister Giorgia Meloni said on Thursday that the US’s trade tariffs were a mistake but their impact should not be overestimated and the reaction needed to be carefully considered.
The Bank of Italy said on Friday the euro zone’s third largest economy would grow by just 0.5% this year, less than half the government’s 1.2% forecast made in September.
High-debt Italy has committed to bringing its deficit below the EU’s 3% of gross domestic product ceiling in 2026 from 3.4% in 2024, a task made harder by its faltering economic growth.