United News of Bangladesh

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.

Moscow would have its access to financial markets and high-tech goods limited under Western sanctions being prepared in case Russia attacks Ukraine, one of the European Union’s top officials said Saturday. The comments from Ursula von der Leyen, the head of the EU’s executive commission, came as tensions over Russia’s intentions toward Ukraine intensified. U.S. President Joe Biden said Friday he was convinced” Russian President Vladimir Putin has decided to invade the neighboring country. “The Kremlin’s dangerous thinking, which comes straight out of a dark past, may cost Russia a prosperous future,” von der Leyen said Saturday during the annual Munich Security Conference, where U.S. Vice President Kamala Harris also spoke. Von der Leyen said the EU’s executive arm has developed a “robust and comprehensive package” of financial sanctions with the U.S., U.K. and Canada. “In case that Russia strikes, we will limit the access to financial markets for the Russian economy and (impose) export controls that will stop the possibility for Russia to modernize and diversify its economy,” she added. “And we have a lot of high-tech goods where we have a global dominance, and that are absolutely necessary for Russia and cannot be replaced easily.” Also read: US defense chief: Russia ‘uncoiling and poised to strike’ German Chancellor Olaf Scholz said that during a Tuesday meeting with Putin he “made clear that any further violation of the territorial integrity of Ukraine will have high costs for Russia, politically, economically and geo-strategically.” “And at the same time, I stressed that diplomacy won’t fail because of us,” Scholz added. “As much diplomacy as possible without being naïve, that is our aspiration, and we are using all channels of communication for that.” Western leaders so far have not specified what precise Russian action would trigger sanctions. A French official who wasn’t authorized to be publicly named and spoke on condition of anonymity after Biden conferred with several counterparts on Friday said they were talking about an invasion of territory currently under the control of the government in Kyiv. “It is in the event of an invasion of this territory that ... the massive sanctions that we are talking about would be triggered,” the official said. Parts of eastern Ukraine are under the control of pro-Russia separatists who have been fighting Ukrainian forces since 2014, the year Russia annexed Ukraine’s Crimean Peninsula. German Foreign Minister Annalena Baerbock, asked what Russian actions would trigger sanctions, didn’t offer any details after a meeting in Munich with her counterparts from the Group of Seven industrial powers and Ukraine. Also read: Ukraine-Russia crisis: What to know as tension grinds on “A breach of Ukraine’s integrity and sovereignty is a breach of Ukraine’s integrity and sovereignty,” Baerbock said. “You can’t say that one geographical part is a bit more Ukraine and another is a bit less Ukraine.” She said Western officials have made clear that an actual invasion isn’t the only possible scenario but “are prepared for every situation.” Using a chess analogy, the German minister said, “If you present your next five moves in public, you won’t be particularly successful.”

Asian shares have rebounded from their retreat a day earlier, tracking Wall Street’s recovery from the Federal Reserve’s reminder it will eventually provide less support to markets. Japan’s benchmark Nikkei 225 jumped 2.8% in morning trading to 28,785.24. Australia’s S&P/ASX 200 added 1.4% to 7,336.30. South Korea’s Kospi rose 0.6% to 3,260.11. Hong Kong’s Hang Seng edged up 0.1% to 28,522.78, while the Shanghai Composite gained 0.9% to 3,559.32. Read:WTO talks on Trips waiver from June 30 Although the latest bout of jitters over a possible easing of help from the Federal Reserve and other central banks appears to have passed, analysts said rising coronavirus cases in the region remained a concern. “Much of the region is dealing with renewed waves of COVID-19 infections. These waves, especially in the case of India, Indonesia and some other countries in Southeast Asia, are the most severe yet,” said Venkateswaran Lavanya at Mizuho Bank in Singapore. On Monday, the S&P 500 snapped 1.4% higher, to 4,224.79, recovering nearly three-quarters of its worst weekly loss since February. Oil producers, banks and other companies that were hit particularly hard last week led the way. The Dow Jones Industrial Average gained 1.8% to 33,876.97 and the Nasdaq composite rose 0.8%, to 14,141.48. Investors are still figuring all the ramifications of the Fed’s forecast that may start raising short-term interest rates by late 2023. That’s earlier than previously thought. The Fed also began talks about slowing programs meant to keep longer-term rates low, an acknowledgment of the strengthening economy and threat of higher inflation. Read:Australia says it’s reached a free trade deal with Britain The market’s immediate reaction to last week’s Fed news was to send stocks lower and interest rates higher. Higher rates would make stock prices, which have been climbing faster than corporate profits, look even more expensive than they do already. But it’s not like the Fed said it will hike rates from their record low of nearly zero anytime soon. “If markets are worried about a march back to more normal monetary and fiscal policy as the economy recovers, it will be a very long march,” Barings chief global strategist Christopher Smart said in a note. In the meantime, support from both the Federal Reserve and the U.S. government should continue to help stock prices, even if they do look expensive compared with history, he said. Companies whose profits are the most closely tied to the economy’s strength and inflation were among the market’s strongest on Monday. Hess, Marathon Oil and Devon Energy all rose at least 6.9% as energy stocks rallied with the price of oil. Banks were also strong, with Bank of America up 2.5% and Wells Fargo climbing 3.7%. High-growth companies able to flourish almost regardless of the economy lagged behind in a reversal from last week’s trend, when investors rattled by the Fed piled back into the biggest winners of the pandemic. Amazon slipped 0.9%, and the lagging performance for tech meant the Nasdaq trailed other indexes. Read:Odds of settling US-EU trade rifts? Hope may outrun progress More bumps may be ahead for markets, which had been mostly quiet for weeks before the Fed’s announcement. Fed Chair Jerome Powell will speak before a House subcommittee on Tuesday about the Fed’s response to the pandemic. In energy trading, benchmark U.S. crude picked up 13 cents to $73.25 a barrel in electronic trading on the New York Mercantile Exchange. It jumped $1.83 to $73.12 on Monday. Brent crude, the international standard, gained 23 cents to $75.13 a barrel. In currency trading, the U.S. dollar rose to 110.39 Japanese yen from 110.31 yen. The euro rose to $1.1918 from $1.1914.

The economic affects of the coronavirus have preceded the spread of the virus itself, with financial markets swinging wildly, companies closing offices or asking employees work from home in affected areas, and throttling air travel across the globe. Following is a brief look at how things are changing in the economy and the workplace today as the outbreak widens.