Senior White House officials have indicated that some of the newly announced tariffs by US President Donald Trump could be short-lived, potentially lasting only “days or weeks”, as over 50 nations have reportedly approached the US to commence trade negotiations.
These comments follow a steep decline on Wall Street, where US markets dropped nearly 10% over just two days. The sell-off came after the announcement of what President Trump called “liberation day” tariffs. The broad scope and unexpected intensity of the measures took investors and analysts by surprise, shaking market confidence.
In a concerted media push across Sunday morning talk shows in the US, several Trump administration economic advisors sought to reframe the tariffs as a strategic repositioning of America’s global trade stance.
Asian markets are poised to open within hours, and attention is now shifting towards the Monday opening of US stocks. Treasury Secretary Scott Bessent claimed that more than 50 countries have entered into talks with the US since the announcement last Wednesday, asserting that Mr Trump now holds a position of strength.
“He’s created maximum leverage for himself,” Mr Bessent told NBC News. He also dismissed concerns over stock market volatility and the potential for a recession.
“We could see from Friday’s jobs report, which exceeded expectations, that the economy is still progressing. I don’t believe we need to factor in a recession at this stage,” he added.
Before the tariff announcement, the US economy added 228,000 jobs in March, well above forecasts.
Nonetheless, the impact on financial markets has been severe. The S&P 1500 Composite Index lost close to US$6 trillion (A$9.8 trillion) in value over the two trading sessions after the tariffs were announced, potentially affecting the retirement savings of millions of Americans.
Since then, JPMorgan economists have downgraded their prediction of US GDP growth from the initial 1.3% growth estimate to a 0.3% loss for the year. Additionally, it is anticipated that the unemployment rate will increase from the current 4.2% to 5.3%.
Commerce Secretary Howard Lutnick, appearing on CBS News, echoed Bessent’s remarks, saying the tariffs could be lifted quickly if trade deals are reached. “They could be in place for days or weeks,” Mr Lutnick noted, suggesting that negotiations may ease tensions.
He also defended the decision to impose tariffs on uninhabited islands, arguing they could serve as loopholes for countries like China to reroute goods and avoid duties. “Basically, [Mr Trump] said, ‘I can’t let any part of the world be used as a backdoor for other countries to sidestep tariffs,'” Mr Lutnick said.
The new tariffs are scheduled to take effect on 9 April.