Israel, India, others want negotiation as White House defends Trump’s tariff

As global markets remain on edge, US officials defended President Trump’s controversial tariff policy on Sunday, revealing that countries including Israel, India, and others have reached out to the US to negotiate in response to the sweeping trade measures.

Treasury Secretary Scott Bessent, speaking on NBC’s Meet the Press, said that over 50 nations have entered talks with the US since the tariffs were introduced.

“He’s created maximum leverage for himself,” Bessent said, highlighting the global diplomatic efforts prompted by the tariffs.

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Commerce Secretary Howard Lutnick, appearing on CBS’s Face the Nation, described the tariffs as potentially short-term, stating they could last only “days and weeks” before being lifted.

White House economic adviser Kevin Hassett further emphasized that the tariffs were not intended to influence the Federal Reserve, stressing there would be no “political coercion” of the central bank.

Despite these reassurances, economists are revising their outlooks. Analysts at JPMorgan now expect a 0.3% contraction in US GDP this year, down from a previous prediction of 1.3% growth. They also foresee an increase in the unemployment rate to 5.3%, up from the current 4.2%.

Billionaire investor Bill Ackman, who previously supported Trump’s economic approach, warned that the ongoing instability could result in an “economic nuclear winter” if the president’s strategy is not reconsidered.

Starting Saturday, US customs officials began enforcing a 10% tariff on imports from a range of countries. Higher “reciprocal” tariffs—ranging from 11% to 50%—are set to take effect early Wednesday.

Countries around the world have begun responding to the tariffs.

Taiwan’s President Lai Ching-te proposed eliminating tariffs as a foundation for renewed talks and pledged to dismantle trade barriers while increasing Taiwanese investments in the US.

Israeli Prime Minister Benjamin Netanyahu, set to meet with Trump on Monday, has indicated he will discuss a 17% tariff on Israeli goods during their meeting.

India has opted for a more restrained approach. A government official told Reuters that India would not retaliate against the 26% tariff, focusing instead on diplomatic negotiations.

European officials are also voicing concerns. Italian Prime Minister Giorgia Meloni, speaking at a wine fair in Verona, promised to protect domestic industries from the impact of a 20% tariff on EU exports. Italian producers and US importers at the fair expressed fears over declining sales and long-term harm to their businesses.

With countries scrambling to safeguard their interests, the global economic community is closely watching Washington, awaiting the next chapter in this evolving trade standoff.

(Reuters)