US President Donald Trump has stated that closing the trade deficit with China is his top priority. Although Trump expressed his openness to a trade deal with China, he emphasized that the trade deficit must be closed first. “We have a huge trade deficit with China. I want to fix it, and they're going to have to fix it,” he stated. Adding that a deal is not possible unless the trade deficit is closed, he stated: “I am open to talk, but why should I sit down to negotiate to close this deficit?”
US Trade Secretary Lutnick Promises Tariffs Will Be Imposed
Following President Trump's statements, US Secretary of Commerce Howard Lutnick took a firm stance on the country's tariffs. Lutnick stated that these steps, which could cause fluctuations in global markets, will definitely be implemented. “Tariffs are coming. The president is serious about it. Of course they will be implemented,” Lutnick stated, adding that the plan announced on April 2 would impose a 10% tariff on all imported goods. The new tariffs will cover products from 57 countries and will take effect on April 9. Lutnick emphasized that the White House has no plans to delay the tariffs and said that they will be in effect for a long time.
Bad Prediction from JPMorgan: “Tariff Plan Will Lead US Economy to Recession”
JPMorgan, one of the leading investment banks in the US, predicted that the tariffs announced by President Trump will cause serious damage to the country's economy. In line with these developments, JPMorgan revised its growth expectations for the US downwards and predicted that the economy will contract by 2025. In just two days, USD 5 trillion was wiped off the total market capitalization of the most valuable companies traded on US markets. These developments further deepen the economic impact of the trade war.
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