Trump officials vow to stay the course on tariffs despite market turmoil

Donald Trump’s top economic advisors reaffirmed their commitment to imposing sweeping tariffs on global imports, downplaying concerns over a potential recession even as financial markets prepared for renewed volatility.

In a series of Sunday morning TV appearances, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick stood firm behind Trump’s aggressive trade agenda, brushing aside last week’s sharp stock market downturn and portraying the tariffs as a necessary reset of global trade practices.

They also confirmed that a new round of tariffs on goods from dozens of countries—set to take effect Wednesday—would proceed as scheduled. These duties follow a 10 per cent “base” tariff that went into effect Saturday, affecting the bulk of imported items.

“He meant it when he said it. The tariffs are absolutely happening,” Lutnick said on CBS, stressing that there would be “no delay” in implementation.

“The global trading system needs a reset, and this is how you do it.”

Senior officials noted that since Trump’s Rose Garden announcement last Wednesday, over 50 nations had reached out to explore possible exemptions or negotiations. However, they expressed doubt that quick deals could undo the sweeping trade measures anytime soon.

“This isn’t something you solve in a few days or even weeks,” Bessent said during an NBC interview. “After decades of unfair practices, you don’t just hit reset and move on. We need to see credible offers.”

The administration is facing growing political pushback as concerns over the economic fallout build. Last week’s market sell-off sparked sharp criticism from Democrats and even drew concern from some Republicans wary of the president’s protectionist stance.

On Friday, Federal Reserve chair Jay Powell issued a stark warning: the new tariffs could fuel inflation and slow growth in the US economy. China’s retaliation with its own set of tariffs on American products has only deepened worries about escalating trade tensions.

Despite mounting alarm, Bessent dismissed suggestions that the tariffs would do lasting damage. “A recession isn’t inevitable,” he said, describing the tariff impact as a “one-time price adjustment” and downplaying Wall Street’s recent turbulence.

“No one knows what the market will do tomorrow or next week,” he added. “Americans planning for retirement, those who’ve been saving for years—they’re not reacting to daily market swings.”

Still, former Treasury Secretary Lawrence Summers, who served under President Bill Clinton, said the president’s trade policies could provoke further instability if they’re not reversed.

“Unless Trump changes direction, we’re in for more turbulence,” Summers told ABC. “It’s no surprise that people are hesitating to spend, that businesses are holding back. This path leads to trouble. We need a full reversal before things get worse.”