Market panic mounts as world scrambles to temper Trump tariffs

Wall Street braced for major losses on Sunday as Donald Trump's tariffs on exports to the U.S. led to a market selloff, with oil prices plunging despite efforts by countries to negotiate with the president.

Trump denied that he was intentionally causing the market downturn, stating that he could not predict market reactions and would not make deals unless trade deficits were addressed. "Sometimes you have to take medicine to fix something," he said, referring to the economic pain caused by his tariff policies, which have wiped trillions of dollars from U.S. companies’ value.

As markets prepared to open Monday, futures contracts indicated further losses. The Dow Jones Industrial Average fell 3.56%, and the S&P 500 dropped 3.85%. U.S. oil prices dropped below $60 per barrel for the first time since April 2021.

Israeli Prime Minister Benjamin Netanyahu was scheduled for talks with Trump about the 17% tariffs on Israel. British Prime Minister Keir Starmer warned that the global order was shifting and would increasingly depend on "deals and alliances."

While Trump’s tariff deadlines have allowed some countries to negotiate, he insisted he would stand firm. More than 50 countries have reached out to begin talks, with Vietnam requesting a 45-day delay on 46% tariffs. White House Economic Council head Kevin Hassett argued that tariffs wouldn’t significantly affect U.S. consumers.

Treasury Secretary Scott Bessent said that 50 countries had contacted the president, but whether Trump would negotiate depended on the offers received. Bessent noted that some countries had been "bad actors" for years.

Despite hopes for a resolution, markets continued to show signs of stress. Saudi Arabia’s market dropped 6.78%, the largest loss since the COVID-19 pandemic. Larry Summers predicted continued market turbulence, while Trump’s tariff advisor, Peter Navarro, reassured investors, promising a "biggest boom" in the stock market.

Russia has been excluded from the new tariffs, likely due to sanctions related to the Ukraine invasion. Trump has long argued that tariffs are necessary to correct trade imbalances, calling them "a very beautiful thing" on Truth Social. However, economists warn that tariffs may lead to higher prices for U.S. consumers.

This article was reported by journalist Jimmy.