United News of Bangladesh

A closely watched inflation gauge cooled last month in a sign that prices were steadily easing before most of President Donald Trump’s tariffs were implemented. At the same time, consumers accelerated their spending, particularly on cars, likely in an effort to get ahead of the duties. Wednesday’s report from the Commerce Department showed that consumer prices rose just 2.3% in March from a year earlier, down from 2.5% in February. Excluding the volatile food and energy categories, core prices rose 2.6% compared with a year ago, below February’s 2.8%. Economists track core prices because they typically provide a better read on where inflation is headed. The slowdown in inflation could be a temporary respite until the widespread duties imposed by Trump begin to push up prices in many categories. Economists forecast that inflation could reverse its recent decline and reach 3% or higher by the end of this year. Wednesday’s report also showed that consumer spending increased 0.7% from February to March, a healthy gain. Much of the increase appeared to be driven by efforts to get ahead of duties, such as Trump's 25% duty on imported cars, which took effect April 3. Spending on autos surged 8.1% in March, the government said. But spending on restaurants and hotels also jumped after falling in February, a sign Americans are still willing to splurge a little on travel and dining out. Car sales spiked last month as consumers and businesses accelerated acquisitions to get ahead of tariffs. That means auto sales may fade in the coming months because those assets have already been secured. Earlier Wednesday, the government reported that consumer spending slowed in the first three months of the year, compared with last year’s final quarter, as bad weather depressed shopping and Americans took a breather after healthy spending over the winter holidays. The nation’s economy actually shrank 0.3% in the January-March quarter as imports surged as companies sought to get ahead of Trump’s tariffs. Pakistan warns of imminent Indian Military Strike amid rising tensions Trump benefited in last year’s election from broad dissatisfaction among voters about the steep rise in prices that began in 2021 and that, on average, pushed prices up about 25% by the middle of last year. Grocery costs shot up nearly 30%. As a candidate, Trump said he would immediately lower prices if elected. Yet the president has slapped 25% duties on steel and aluminum, as well as cars, and a 10% tariff on nearly all other imports. And China, the United States’ third-largest trading partner, now faces a 145% duty on its exports. The inflation-fighters at the Federal Reserve target a 2% inflation rate and pay close attention to Wednesday’s inflation gauge, known as the personal consumption expenditures price index. The better-known consumer price index was released earlier this month and also showed a steady decline. Trump has pushed the Fed to cut its key short-term interest rate because inflation has cooled. But Fed Chair Jerome Powell has underscored that the central bank is likely to remain on the sidelines as officials gauge how tariffs will impact the economy. The Fed isn’t expected to lower its rate at its policy meeting next week.

Bernard Arnault, chairman and CEO of French luxury conglomerate LVMH, called on Thursday for a free trade zone between the European Union and the United States and said that unresolved trade tensions could seriously hurt European industries. His remarks, in the wake of the tariffs announced by President Donald Trump, appeared to echo a similar call by Elon Musk on April 5 for a zero-tariff zone between the U.S. and EU. The EU has long pushed for a “zero-for-zero” trade agreement — with both sides dropping tariffs — but Trump has rejected the offer. Speaking at LVMH’s annual shareholder meeting, Arnault said European leaders should negotiate “cleverly” with the U.S. administration and that national governments should take a more prominent role instead of than leaving negotiations solely in the hands of Brussels, the center of EU’s “bureaucratic power.” Trump joins tariff talks with Japan as US seeks deals amid trade wars France’s LVMH has for decades been the world’s dominant luxury group — known for products such as Moët & Chandon Champagne, Hennessy Cognac, Louis Vuitton handbags and Dior perfumes — but this week lost its title as the world’s largest luxury company to rival Hermès. “Europe is not run by a political power, but by a bureaucratic power that spends its time issuing regulations that are unfortunately imposed on all member states and that penalize our business sectors,” the 76-year-old CEO said. The European Commission, the EU’s executive branch, negotiates trade deals on behalf of all 27 member states. The bloc is the largest trading entity in the world. LVMH shares fell 7.8% earlier this week, following an unexpected drop in first-quarter sales. Arnault said the company may be forced to expand U.S. operations. "We would be forced to increase our American production to avoid tariffs if Europe failed to negotiate with intelligence,” he said. In 2019, LVMH shifted part of its production to the U.S. by opening a Louis Vuitton workshop in Alvarado, Texas, during Trump’s first term. Trump and Arnault toured the facility together, promoting it as a symbol of U.S. manufacturing revival. But on Thursday, Arnault admitted the Texas site has underperformed so far. According to documents presented at the meeting, the U.S. accounts for 25% of LVMH’s total sales. Arnault also criticized France’s proposed corporate tax increases, calling them a “tax on ‘Made in France’” and warned they could push companies to relocate abroad. He praised the U.S. model, citing lower taxes and state-backed industrial investment. “When you come back to France after spending a few days in the U.S., it’s a bit of a cold shower,” he said.

The World Trade Organization (WTO) says the volume of trade in goods worldwide is likely to decrease by 0.2% this year due to US President Donald Trump’s shifting tariff policies and a standoff with China, but it would take a more severe hit if Trump carries through on his toughest “reciprocal” tariffs. The decline in trade will be particularly steep in North America even without the stiffest tariffs, the global trade forum said Wednesday, with exports there this year expected to fall by 12.6% and imports by 9.6%, AP reports. The WTO based its report on the tariff situation as of Monday. Initially, 2025 and 2026 were expected to have continued expansion of world trade, but Trump’s trade war forced WTO economists to substantially downgrade their forecast, the forum said. Trade in goods worldwide would slump by 1.5% if Trump follows through on his stiffest tariffs on most nations, due to the uncertainty unsettling businesses. China's economy grows at a 5.4% annual pace in Jan-March quarter Trump suspended the toughest set of tariffs for 90 days earlier this month so more than 70 countries have a chance to address US trade concerns. Meanwhile, he is increasing taxes on Chinese imports to 145% and engaging in a lengthy back and forth with Canada and Mexico about tariffs on their goods. Despite the 90-day pause, “the enduring uncertainty threatens to act as a brake on global growth, with severe negative consequences for the world, the most vulnerable economies in particular,” WTO Director-General Ngozi Okonjo-Iweala said in a statement. “Our simulations show that trade policy uncertainty has a significant dampening effect on trade flows, reducing exports and weakening economic activity,” WTO chief economist Ralph Ossa said in the statement. “Moreover, tariffs are a policy lever with wide-ranging and often unintended consequences. In a world of growing trade tensions, a clear-eyed view of those trade-offs is more important than ever."

As President Donald Trump ramps up his trade war with China, he is also straining ties with traditional U.S. allies who might have otherwise bolstered America's position in the standoff between the world's two largest economies. For years, American policymakers—including Trump—have sought to shift U.S. economic and strategic focus toward countering China’s growing global influence. However, nearly three months into his second term, Trump’s "America First" tariffs and budget reductions may be creating a major opening for Beijing to sidestep U.S. pressure. This week, Trump intensified his trade offensive by raising tariffs on Chinese imports to an extraordinary 145%. At the same time, he temporarily halted tariffs on other nations' goods for 90 days following a sharp downturn in the stock market. Still, the back-and-forth approach has disrupted global trade and damaged Washington's relations with long-standing partners. While Trump promotes a protectionist agenda, China is broadcasting a contrasting message: it promises wider market access and positions itself as a source of global economic stability. Beijing, now directly targeted by Trump’s tariff strategy, is maneuvering to benefit from the geopolitical shift, seizing opportunities created by U.S. isolationism to expand its influence and strengthen ties with other global players. “The world must embrace fairness and reject hegemonism,” China has stated—an implicit criticism of U.S. trade policy. In recent months, Chinese leaders have engaged with their counterparts from the EU, South Korea, Japan, and other nations, appealing for unity among countries hit by U.S. tariffs. China reiterated its commitment to global engagement, stating: “As the world’s second-largest economy and a major consumer market, China remains committed to further opening, regardless of global uncertainties.” U.S. Tariff Policy Sparks Global Reaction Trump’s aggressive tariff campaign follows his withdrawal from international institutions such as the World Health Organization and the dismantling of U.S. agencies like USAID and the U.S. Agency for Global Media. These moves have fueled concerns that Washington is surrendering influence to Beijing. China reaches out to others as Trump layers on tariffs Rep. Raja Krishnamoorthi, the top Democrat on the House Select Committee on the Chinese Communist Party, criticized the approach: “Rather than reinforcing alliances to counter China, the Trump administration is turning its back on the partnerships that have underpinned U.S. strength and security for decades.” Trump’s selective tariff pause—excluding China—highlights the administration’s desire to isolate Beijing. But White House press secretary Karoline Leavitt defended the policy, claiming, “Rather than drifting toward China, countries are reaching out to the United States because they rely on our markets.” Commerce Secretary Howard Lutnick confirmed that building international coalitions is not part of Trump’s strategy. “The president is focused on securing the best deals for America individually,” he said. Beijing Eyes Strategic Gains Despite the turbulence, Beijing hasn’t yet fully capitalized on the opening, according to Josh Lipsky of the Atlantic Council’s GeoEconomics Center. He noted that both the U.S. and China are so entrenched in their trade conflict that other countries have become secondary considerations. China's persistent overcapacity in manufacturing may also limit its ability to forge new economic alliances. Gabriel Wildau of Teneo noted that Trump's partial tariff suspension appears aimed at further isolating China, making it harder for Beijing to rally a broad global coalition against U.S. trade actions. On Capitol Hill, House Democrats expressed concern that Trump’s tariffs have pushed important Asia-Pacific partners—including Japan, South Korea, Australia, and Vietnam—closer to China. “We’ve started trade disputes with every one of our partners in the Asia-Pacific,” said Rep. Adam Smith of Washington. Rep. Joe Courtney of Connecticut added, “This is steering our allies away from us.” But not everyone agreed. Rep. Trent Kelly of Mississippi defended the tariffs, saying, “Letting others take advantage of us doesn’t make us strong leaders.” Shortly after Trump announced his new round of “reciprocal” tariffs on April 2, Rep. Krishnamoorthi denounced the decision as “a total surrender of American global leadership that plays straight into China’s hands.” Trump pauses reciprocal tariffs for 90 days, except for China China Strengthens Global Ties Amid U.S. Trade Disruption Amid intensifying trade tensions, Chinese Premier Li Qiang spoke by phone with European Commission President Ursula von der Leyen, reaffirming China’s desire to strengthen its relationship with the EU. Li described China and the EU as vital trading partners with deeply interconnected economies. Von der Leyen acknowledged the need for Europe and China to support a more robust international trading system in light of U.S. disruptions. She also pressed for improved market access for European firms in China. China raises retaliatory tariff on US to 84% as it vows to 'fight to the end' Meanwhile, Chinese Commerce Minister Wang Wentao, during a virtual meeting with Malaysia’s trade minister, emphasized Beijing’s readiness to work with trading partners to protect multilateral trade rules. Malaysia currently chairs ASEAN, the 10-member Southeast Asian bloc. ASEAN’s economic ministers, in a joint statement, voiced concern over U.S. unilateral tariffs, warning of negative impacts on small businesses and overall trade flows. Earlier in March, China’s trade officials met with their counterparts from Japan and South Korea, issuing a joint statement calling for greater cooperation on supply chain resilience. However, they stopped short of addressing a unified response to U.S. tariffs—highlighting the challenges of forming a regional consensus.

US President Donald Trump declared a complete halt on all “reciprocal” tariffs that took effect at midnight, with the exception of those imposed on China. Trump announced that tariffs on China would rise from 104% to 125%, reports CNN. Meanwhile, Chief Adviser Muhammad Yunus has expressed his gratitude to President Trump for his decision. "Thank you, Mr. President, (@POTUS) for responding positively to our request for 90-day pause on tariffs. We will continue to work with your administration in support of your trade agenda," Chief Adviser's Press Secretary Shafiqul Alam said quoting Chief Adviser Prof Muhammad Yunus. In a post on Truth Social on Wednesday, Trump stated that he had “authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.” “Due to the lack of respect China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Trump wrote on his social media. “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” he added. The decision to raise tariffs on China followed Beijing's announcement of new retaliatory tariffs on the United States, set to take effect on Thursday. The Trump administration has specifically targeted China's trade practices, said the report. Treasury Secretary Scott Bessent praised Trump’s resolve, stating on Wednesday that Trump had “great courage to stay the course until this moment.” The administration has warned countries worldwide, “do not retaliate and you will be rewarded,” and expressed willingness to negotiate with any nation seeking to engage in talks, Bessent noted. Bessent emphasized that the move “signals that President Trump cares about trade and that we want to negotiate in good faith.” Both Bessent and Commerce Secretary Howard Lutnick were with Trump when he posted his message on Truth Social, Lutnick confirmed on a post on X,added the report. “Scott Bessent and I sat with the President while he wrote one of the most extraordinary Truth posts of his Presidency,” Lutnick wrote. “The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction.” Stocks surged following the announcement, with the Dow climbing 2,200 points, or 5.9%. The S&P 500 gained 6.5%, and the Nasdaq rose by more than 8%. The markets had been under pressure due to the potential for significantly higher tariffs, as outlined by Trump last week, the report also said. However, Trump did not indicate that he was pausing the 10% universal tariff on all trading partners, except for Canada and Mexico, which took effect over the weekend. As a result, countries that had reciprocal tariffs imposed on them would still face a 10% tariff, Bessent confirmed.

Nobel Prize-winning economist Paul Krugman has criticised the imposition of high tariffs on imports of clothing from Bangladesh, calling it a wrong move. “Putting high tariffs on imports of clothing from Bangladesh is exactly what you shouldn’t be doing. That’s the kind of thing that is disruptive, raises the cost of living for American consumers, does nothing to make us more secure,” Krugman, who specialises in trade, told The New York Times during a recent interview. US reciprocal tariff move risks global trade disruption: ICC There may be a national security argument for domestic production, as well as for friendshoring and nearshoring, because goods that are closer are easier to secure. “But if that were our goal, we wouldn’t be levying tariffs on Vietnam and Bangladesh, and we certainly wouldn’t be imposing tariffs on Canada and Mexico,” he said. Krugman said that the trading system, which Donald Trump is now dismantling, was developed with a focus on both economic efficiency and a more enlightened, broader perspective on national security. Dr Yunus urges Trump to delay reciprocal tariffs on Bangladesh by 3 months He referenced Cordell Hull, F.D.R.’s secretary of state, who believed that strengthening economic links across the free world could promote solidarity among democracies and counter the threat of Stalinism. “So what we’re doing is tearing up — partially in the name of national security — a policy that was partially intended to enhance national security,” he added. There’s no question that the U.S. is alienating its allies — or its worthwhile allies — by doing all of this. And in some cases, they’re making common cause with our potential enemies,” he also said. Krugman also discussed the influence of political figures on trade policy, saying, “We have some direct evidence that’s what’s happened. Peter Navarro, who is sort of Trump’s trade czaar. I don’t know if he is still called that. But effectively, at least according to some of the reporting, he was recruited because they basically sent Jared Kushner out to search through Amazon and find somebody who had written books hostile to China.” Govt initiates talks with US over newly imposed tariffs: Finance Adviser He went on to say that One of the most interesting cases was Bob Lighthizer, a longstanding contrarian and protectionist voice in Washington. While many see him as a negative force in trade policy, he is respected for his expertise. People expected him to play a key role in the Trump administration, but he was overlooked. Likely because he is independent and didn’t align himself with Trump’s views. “So he might actually say to the king: No, not tariffs on Bangladesh.”

China declared on Tuesday that it would “fight to the end” and implement countermeasures to protect its interests after U.S. President Donald Trump threatened to impose a further 50% tariff on Chinese goods. The Commerce Ministry criticised the United States for introducing what it termed “so-called ‘reciprocal tariffs,’” describing them as “completely groundless” and an example of “typical unilateral bullying.” China has already responded with retaliatory tariffs and signalled in its latest statement that more could follow. “The countermeasures taken by China aim to safeguard its sovereignty, security, and development interests, as well as to uphold the normal order of international trade. These actions are entirely lawful,” the ministry stated. “The U.S. decision to escalate tariffs on China is a repeated blunder and again highlights the coercive nature of the U.S. approach. China will never yield. Should the U.S. persist, China will fight to the end.” Trump’s latest threat, issued on Monday, sparked renewed fears that his efforts to restructure global trade could trigger a deeper and more damaging trade war. Stock markets from Tokyo to New York have experienced increased volatility as tensions rise. Trump warns of additional tariffs on China The threat followed China’s announcement that it would retaliate against tariffs introduced by Trump the previous week. “If China does not withdraw its 34% increase, which adds to their already long-term trade abuses, by April 8th, 2025, the United States will impose ADDITIONAL tariffs of 50% on China, effective April 9th,” Trump wrote on Truth Social. “Furthermore, all discussions with China regarding their requested meetings will be cancelled!” If enacted, the new tariffs would raise the total U.S. duty on Chinese imports to 104%. This includes the new 50%, plus the 20% levied as a penalty for fentanyl trafficking and an earlier 34% announced last week. These increases could lead to higher costs for U.S. consumers and prompt China to redirect lower-cost goods to other markets while strengthening trade ties with partners such as the European Union. During his first term, Trump frequently pointed to stock market gains as a measure of success, and some analysts believed the threat of market losses could discourage aggressive economic policies during a second term. However, that hasn’t held true, as Trump has downplayed economic disruptions. “I don’t mind going through it because I see a beautiful picture at the end,” he remarked. Although Trump administration officials have regularly appeared on TV to defend the tariffs, their arguments have failed to calm the financial markets. The only temporary lift came from a false report claiming top economic adviser Kevin Hassett said Trump was considering pausing all tariffs except on China. Markets surged before the White House dismissed the claim as “fake news.” China remains one of the largest U.S. trading partners, especially in consumer goods. Tariffs, which are effectively taxes on imports paid by American companies, are likely to result in higher prices for U.S. consumers. Federal Reserve Chair Jerome Powell on Friday warned that these tariffs might fuel inflation. “There’s a lot of waiting and seeing going on, including by us,” he said, noting no immediate decisions would be taken. European Commission President Ursula von der Leyen responded by saying the EU would seek trade opportunities with other nations beyond the U.S., pointing out there are “vast opportunities” elsewhere. Dr Yunus urges Trump to delay reciprocal tariffs on Bangladesh by 3 months In 2024, U.S. trade in goods with China totalled an estimated $582 billion, making China the top trading partner. The U.S. trade deficit in goods and services with China that year ranged between $263 billion and $295 billion.

President Donald Trump declared on Sunday that he remains firm on imposing broad tariffs on imports from much of the world, stating he will only consider backing down if other countries address their trade imbalances with the US.  This steadfast approach, which has shaken financial markets and sparked fears of a global downturn, reflects Trump’s commitment to implementing the duties despite widespread concerns. Texas town that backed Trump faces fallout from immigration raid at popular bakery During a press interaction aboard Air Force One, Trump remarked that although he does not wish to see global markets slide, he is also unfazed by the current sell-off, saying, “sometimes you have to take medicine to fix something.” His remarks came as global markets looked set to continue their decline when trading resumed Monday. Meanwhile, members of Trump’s administration attempted to calm market jitters by noting that over 50 countries had expressed interest in launching talks to ease the tariffs. “I spoke to many leaders—European, Asian, from around the globe,” Trump said. “They’re eager to strike deals. I made it clear that we will not tolerate trade deficits with their countries. For me, a deficit equals a loss. We aim for trade surpluses or, at the very least, a balanced outcome.” The increased tariffs are scheduled to take effect on Wednesday, marking the beginning of a phase of economic uncertainty with no clear resolution in sight. Treasury Secretary Scott Bessent stressed that the issues at hand stem from unfair trade practices, which “aren’t the type of problems you can negotiate away quickly.” He added that the U.S. will have to assess each country's proposals to see if they are credible. From Florida, where he spent the weekend golfing, Trump posted on social media, “WE WILL WIN. HANG TOUGH, it won’t be easy.” His Cabinet members and top economic aides actively defended the tariffs on Sunday, downplaying their broader impact on the global economy. “There’s no certainty of a recession. No one knows how markets will behave in the short term,” Bessent said. “What matters is laying down the long-term economic foundation for prosperity.” Millions take to streets across US against Trump and Musk U.S. stock futures fell Sunday night, reflecting continued market turbulence driven by the tariffs. Futures for the S&P 500 fell 2.5%, the Dow Jones Industrial Average declined 2.1%, and Nasdaq futures dropped by 3.1%. Bitcoin, which had been relatively stable, also slid by nearly 6%. In Asia, markets suffered significant losses. Tokyo’s Nikkei 225 dropped almost 8% after opening, later narrowing to a 6% loss by midday. A circuit breaker temporarily halted trading in Topix futures after steep losses in U.S. futures. Chinese markets followed suit—Hong Kong’s Hang Seng plunged 9.4%, while the Shanghai Composite fell 6.2%. Trump’s announcement on April 2 of widespread tariffs fulfilled a major campaign pledge, as he bypassed Congress to reshape global trade rules. The decision aligns with his longstanding criticism of international trade agreements, which he sees as unfavourable to the U.S. Trump is betting that the American public will tolerate price increases on consumer goods in exchange for a restructured economic order. Many nations are now working to formulate their responses to the U.S. tariffs. China and others have already begun retaliating. Top White House economic adviser Kevin Hassett acknowledged the global backlash, saying that although other nations are “angry and retaliating,” they are also coming to the negotiation table. He referred to reports from the U.S. Trade Representative indicating that over 50 countries had contacted the administration to begin discussions. Adding complexity to the situation, the new tariffs are being applied not only to rival nations but also to U.S. allies. Israel, for instance, is now subject to a 17% tariff. Prime Minister Benjamin Netanyahu is scheduled to visit the White House and hold a joint press briefing with Trump on Monday, during which the tariffs—alongside the Gaza war and other matters—are expected to be discussed. Another ally, Vietnam—a key hub for clothing manufacturing—has also reached out regarding the tariffs. Trump stated that Vietnam’s leader told him by phone that the country is willing to reduce tariffs to zero if a trade deal with the U.S. can be reached. Italian Prime Minister Giorgia Meloni, a vital European partner, expressed disagreement with Trump’s approach but affirmed her readiness to use “all tools—both diplomatic and economic—to protect our businesses and industries affected by these measures.” Commerce Secretary Howard Lutnick confirmed that there will be no delay in implementing the tariffs. “The tariffs are absolutely going into effect,” he stated, explaining that the move is necessary to reset global trade dynamics. However, he only committed to the tariffs staying in place “for days and weeks” for now. In Congress, Trump’s tariff policy has received both applause and concern, particularly from his own Republican Party, which traditionally supports free trade. A group of Republican senators has backed a new bipartisan proposal requiring presidents to justify any new tariffs to Congress. The plan would give lawmakers 60 days to approve the measures—otherwise, they would automatically lapse. On Sunday, Republican Representative Don Bacon from Nebraska said he would introduce a House version of the bill, arguing that Congress must reclaim its tariff authority. “We transferred some of that power to the executive branch, and in hindsight, that may have been a mistake,” Bacon said. He noted, however, that it will be difficult to pass the legislation unless economic conditions worsen—such as further market declines, rising inflation, or job losses. Senator John Barrasso of Wyoming, the second-ranking Republican in Senate leadership, affirmed Trump’s legal right to impose the tariffs but acknowledged growing nationwide concerns. “People are watching the markets closely,” he said. “There will be a discussion in the Senate—we’ll see where it leads.” Elon Musk, the billionaire heading the Department of Government Efficiency under Trump, had previously kept quiet about the tariffs. But at an event in Italy over the weekend, he voiced support for a “zero-tariff” policy between the U.S. and Europe. His comments were promptly criticised by White House trade adviser Peter Navarro. “Elon is great when he sticks to his DOGE lane,” Navarro said. “But let’s be clear—Elon sells cars. He’s simply advocating for his business, just like any entrepreneur would.” Trump also signalled disagreement with Musk, stating Sunday that the European Union “wants to talk, but there will be no discussions unless they commit to paying us significant annual sums.” Former Treasury Secretary Lawrence Summers, who served under Democratic President Bill Clinton, said Trump’s economic strategy lacks consistency. He argued that if the administration’s goal is to encourage manufacturing and generate revenue, they need to commit to the tariffs long-term. But if they’re merely negotiating, the U.S. won't achieve either objective. “If it’s about striking deals and removing tariffs mutually, then we don’t raise revenue or boost domestic manufacturing. If it’s about creating revenue and bringing industries back to the U.S., then the tariffs have to be permanent,” Summers explained. “The president can’t have it both ways.” Bessent appeared on NBC's Meet the Press, while Hassett and Summers were interviewed on ABC’s This Week. Lutnick and Barrasso featured on CBS's Face the Nation, and Navarro spoke with Fox News Channel’s Sunday Morning Futures.

World leaders have reacted with dismay, threats of countermeasures, and calls for negotiations in response to sweeping new tariffs announced by U.S. President Donald Trump. The import taxes, ranging from 10% to 49%, aim to bring factories and jobs back to the U.S. but have rattled global markets. Asian stocks fell sharply, and U.S. futures tumbled, signaling a volatile trading day ahead. Trump's Tariff Hike: How will it affect Bangladesh? Global Reactions Norway: Foreign Minister Espen Barth Eide said the tariffs might violate NATO’s Article 2, which promotes economic cooperation among allies. He plans to raise the issue with U.S. Secretary of State Marco Rubio. Poland: Prime Minister Donald Tusk warned that Poland’s GDP could shrink by 0.4% but vowed that Polish-U.S. ties would endure. Spain: Prime Minister Pedro Sánchez announced a €14.1 billion spending package to counter the tariffs' effects, calling the move "19th-century protectionism." Australia: Prime Minister Anthony Albanese criticized tariffs on remote Australian territories that do not export to the U.S., stressing Australia’s free trade policy. Hong Kong: Strongly opposed the tariffs and urged the U.S. to withdraw them, arguing that Hong Kong maintains a free trade policy. India: The Trade Ministry is expediting negotiations with the U.S. for a trade agreement to offset the impact of tariffs. The U.S. is India’s largest trading partner, with trade valued at $129 billion in 2024. Vietnam: The stock market plunged while gold prices hit a record high. Vietnam’s Prime Minister Pham Minh Chinh remained hopeful for 8% growth despite the heavy 46% tariffs. Ukraine: Economy Minister Yuliia Svyrydenko said Ukraine is negotiating for better tariff conditions, stressing its low tariffs on U.S. goods. Japan: Prime Minister Shigeru Ishiba expressed deep regret over the 25% auto tariff, saying Japanese firms have been major investors in the U.S. Germany: Chancellor Olaf Scholz called the tariffs an “attack” on global trade and warned of economic losses worldwide. Vice Chancellor Robert Habeck labeled the move "Inflation Day," predicting it would trigger recessions. Fiji: Deputy Prime Minister Biman Prasad called the 32% tariffs on Fijian exports “disproportionate” and “unfair,” particularly since the U.S. is a major trading partner. China: The Foreign Ministry condemned the tariffs as "unilateral bullying actions" and a violation of WTO rules. United Kingdom: Prime Minister Keir Starmer pledged a "cool and calm" response and said negotiations for an economic prosperity deal would continue. Thailand: Prime Minister Paetongtarn Shinawatra said Thailand is ready to negotiate and urged exporters to diversify markets. Trump set to announce 'reciprocal' tariffs in a risky move that could reshape the economy Industry and Business Impact Automakers: Stellantis will shut its Windsor, Canada, assembly plant for two weeks due to market uncertainty caused by the tariffs. Honda CEO Toshihiro Mibe said the company needs time to assess the situation. Southeast Asia: Some of the highest tariffs hit Vietnam (46%), Cambodia (49%), Bangladesh (37%), and Sri Lanka (44%). These measures could disrupt supply chains as multinational companies have shifted production to these countries to avoid earlier trade tensions. European Union: The European Commission called the tariffs a “major blow” to the global economy. Germany’s industry federation BDI urged the EU to coordinate a response with other major trading partners. Trump’s tariffs have triggered immediate global pushback, with nations considering countermeasures and negotiations. The economic fallout remains uncertain, but experts warn of rising costs and potential recessions worldwide. As affected countries prepare responses, global markets brace for continued volatility.

The U.S. stock market's downturn deepened on Monday as Wall Street speculated on how much economic strain President Donald Trump is willing to endure through tariffs and other policies to achieve his objectives. The S&P 500 fell 2.7%, bringing it nearly 9% below its all-time high set just last month. At one point, it was down 3.6%, heading for its worst day since 2022—when soaring inflation strained budgets and fuelled concerns about a recession that ultimately did not materialise. Bangladesh Bank halts exchange of new notes for Eid The Dow Jones Industrial Average dropped 890 points, or 2.1%, after recovering from an earlier loss of over 1,100 points, while the Nasdaq composite tumbled 4%. This marked the worst day yet in a volatile period where the S&P 500 has fluctuated by more than 1% in seven of the past eight sessions due to Trump's unpredictable tariff policies. The concern is that these sharp swings could either directly harm the economy or create enough uncertainty to push U.S. companies and consumers into economic stagnation. Signs of economic weakening have already emerged, primarily through surveys reflecting growing pessimism. Additionally, a widely monitored set of real-time indicators compiled by the Federal Reserve Bank of Atlanta suggests the U.S. economy may already be contracting. Asked over the weekend whether he foresaw a recession in 2025, Trump told Fox News Channel: "I hate to predict things like that. There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing." He then added, "It takes a little time. It takes a little time." Trump aims to bring manufacturing jobs back to the U.S., citing this as one of the reasons for his tariff policies. His Treasury Secretary, Scott Bessent, has also indicated that the economy may undergo a "detox" period as it adjusts to reduced government spending. The White House is seeking to curb federal expenditures, cut the federal workforce, and increase deportations—moves that could impact the labour market. For now, the U.S. job market remains stable, and the economy ended last year on solid footing. However, economists are lowering their growth projections for this year. Goldman Sachs' David Mericle, for example, has reduced his estimate for U.S. economic growth in 2025 from 2.2% to 1.7%, largely due to the expectation that tariffs will be more extensive than previously forecasted. He sees a one-in-five chance of a recession within the next year, raising the probability only slightly because "the White House has the option to pull back policy changes" if economic risks "begin to look more serious." "Multiple forces are always at play in the market, but right now, almost all of them are secondary to tariffs," said Chris Larkin, managing director for trading and investing at E-Trade from Morgan Stanley. In response to the market decline, White House spokesman Kush Desai pointed out that numerous companies have responded to Trump's "America First" economic agenda with "trillions in investment commitments that will create thousands of jobs." On Monday, Trump met with tech industry CEOs, though the meeting was closed to the media. Remittance inflow surges amid forex reserve crisis The turbulence on Wall Street has been particularly damaging to some of its biggest players. Big Tech stocks and firms that benefited from the recent artificial intelligence boom have experienced sharp declines. Nvidia dropped another 5.1% on Monday, bringing its year-to-date loss to over 20%—a stark contrast to its nearly 820% surge over 2023 and 2024. Elon Musk's Tesla plummeted 15.4%, extending its 2025 decline to 45%. Initially, Tesla saw a post-election boost due to expectations that Musk's close ties with Trump would benefit the company. However, the stock has since slumped amid concerns that Musk’s brand has become too closely linked with the administration. Protests against the U.S. government's workforce reduction efforts and other policies have even targeted Tesla dealerships. Companies reliant on strong consumer confidence also took significant hits. Cruise operator Carnival fell 7.6%, while United Airlines dropped 6.3%. The sell-off has not been limited to stocks. Investors have also pulled back from other assets that previously seemed unstoppable, such as bitcoin. The cryptocurrency's value has fallen below $80,000, down from over $106,000 in December. Instead, investors have sought refuge in U.S. Treasury bonds, which are perceived as more stable during economic uncertainty. This has driven Treasury prices sharply higher, pushing down their yields. The yield on the 10-year Treasury fell again to 4.22% from 4.32% on Friday. Since January, when it neared 4.80%, yields have steadily declined as economic concerns have mounted—a significant shift for the bond market. Despite the uncertainty, Wall Street dealmaking has continued. Redfin's stock soared 67.9% after Rocket announced it would acquire the digital real estate brokerage in an all-stock deal valued at $1.75 billion. However, Rocket's stock fell 15.3%. ServiceNow declined 7.9% after the AI platform company revealed plans to acquire AI-assistant maker Moveworks for $2.85 billion in cash and stock. Overall, the S&P 500 lost 155.64 points to close at 5,614.56. The Dow Jones Industrial Average dropped 890.01 points to 41,911.71, while the Nasdaq composite fell 727.90 points to 17,468.32. Global markets also felt the impact, with European indexes largely declining after a mixed session in Asia. Hong Kong’s index dropped 1.8%, and Shanghai’s edged down 0.2% after China reported a decline in consumer prices for the first time in 13 months. This was the latest sign of weakness in the world’s second-largest economy, where persistently weak demand was compounded by the early timing of the Lunar New Year holiday.