Amid significant market turbulence, U.S. President Donald Trump addressed the challenges posed by his tariff policies during a cabinet meeting on April 10, 2025. His remarks followed a White House clarification that tariffs on Chinese goods would rise to at least 145%, while a 90-day pause was announced for tariffs on over 75 other countries.

Trump acknowledged "transition problems" but expressed confidence in the long-term success of his trade strategy.

U.S. stock markets experienced sharp declines following the tariff announcements. The Dow Jones Industrial Average fell by 1,015 points (2.5%), the S&P 500 dropped 3.46%, and the Nasdaq Composite lost 4.31%. This followed a historic rise of nearly 3,000 points the previous day, highlighting market volatility.

Trump defended his policies, emphasizing economic progress such as reduced consumer prices, lower inflation, and falling energy costs. He also highlighted ongoing trade negotiations with multiple countries, claiming they were in "good shape" despite time constraints.

Economists and analysts warned that Trump's unpredictable trade policies could dampen investment and slow global economic growth. The existing tariffs have already caused significant economic strain, and recovery is expected to be gradual.

Beijing criticised the U.S. tariffs as "unilateral bullying" but remained open to negotiations. China also imposed retaliatory tariffs of 34% on American goods.

Commerce Secretary Howard Lutnick noted that several countries had made unprecedented trade offers due to Trump's actions. Treasury Secretary Scott Bessent emphasized progress on raising the debt ceiling and highlighted reduced energy prices since January.

While Trump remains optimistic about his tariff strategy, its broader economic implications—such as increased consumer costs and potential recession risks—continue to fuel debate among policymakers and market participants.

Agencies