President Trump said Sunday his reciprocal tariffs launch this week will affect “all countries.”
Why it matters: Trump is expected to announce wide-ranging levies on Wednesday, which he is calling “Liberation Day,” but the administration has yet to reveal many key details of this plan or when levies will be implemented.
- Trump’s economic policy that’s designed to protect domestic companies has already ignited a trade war, with counter-tariffs announced by the European Union and China, and Canadian officials have promised a swift response if the planned auto tariffs take effect on Wednesday.
Driving the news: “You’d start with all countries,” Trump told reporters aboard Air Force One of the sweeping plan, as they traveled back from Florida to D.C. “Essentially all of the countries that we’re talking about.”
- Asked whether he’s weighing higher rates of tariffs, Trump said: “No, the tariffs will be far more generous than those countries were to us. … They ripped us off.”
- Trump suggested there had been historical imbalances in trade with countries in Asia. “You could take a look at trade with Asia and I wouldn’t say anybody has treated us fairly or nicely,” Trump said.
By the numbers: Stock markets fell in Asia on Monday morning following Trump’s comments, with Japan’s Nikkei 225 benchmark falling 4%, South Korea’s Kospi around 2.5% lower and Hong Kong’s Hang Seng Index down 1.7%.
- In Australia, the ASX closed 1.7% lower.
State of play: Trump’s tariffs have contributed to concerns about potential stagflation, a combination of stagnant growth and elevated inflation.
- Asked about stagflation concerns, Trump told reporters: “I haven’t heard that term in years. No, I don’t know anything about it. This country is going to be more successful than it ever was. It’s going to boom.”
- The goal is for more U.S.-made products and services. “We have our own lumber. We have our own energy; we don’t need energy from Canada,” said Trump, in reference to Ontario’s warning it’ll levy electricity exports to Michigan, Minnesota and New York if the North American ally is hit with more tariffs. “We don’t need cars from Canada.”
- Trump told NBC News earlier Sunday he “couldn’t care less” if auto makers raise prices due to his planned tariffs “because people are going to start buying American-made cars.”
Between the lines: “Recession risks have become elevated — to a 40% probability — on concerns that aggressive U.S. policies hit business and household sentiment,” said Bruce Kasman, chief economist at JPMorgan, per Reuters.
- “With the latest tariff increases set to push U.S. core inflation above 4% next quarter, a household sector with a healthy balance will need to show a willingness to lower its saving rate to cushion this blow.”
More from Axios…
- Trump threatens, then reverses, new Canadian tariffs
- Trump pauses Canada-Mexico tariffs again, but stocks sink
- Trump team’s message: Don’t worry about prices, tax cuts are coming
Editor’s note: This article has been updated with more comment from President Trump, details of stock markets in Asia, and with further context.