A White House advisor said that over 50 nations have contacted President Donald Trump's administration to discuss potential tariff agreements as they seek relief. "They're doing that because they understand that they bear a lot of the tariff," National Economic Council Director Kevin Hassett said on Sunday.
Last week, the president imposed a 10 percent 'baseline' tariff on every country that trades with the United States. The policy sent shockwaves through global markets, leading to a loss of over $5 trillion in value from the S&P 500 in just a few days. Other major U.S. stock indexes also took major hits, with the tech-heavy Nasdaq now having entered bear market.
Trump Plans Fall in Place
The president revealed that even steeper tariffs would target countries with large trade imbalances with the U.S., labeling them as the "worst offenders." While Trump indicated the tariffs are likely to remain in place, he did express a willingness to strike new trade deals.
In a recent online post, he said that Vietnam is looking to negotiate a reduction in its current 46 percent tariff rate.
"So the fact is, the countries are angry and retaliating," Hassett shared before adding "and, by the way, coming to the table."
A White House advisor also claimed that the tariffs would have minimal impact on consumers. The major announcement came just a day after Elon Musk, a key Trump ally, publicly called for eliminating tariffs between the United States and one of its main trading partners.
Musk voiced his support for a tariff-free policy during a virtual conversation on Saturday with Italy's Deputy Prime Minister, Matteo Salvini, while speaking from Europe. "At the end of the day, I hope it's agreed that both Europe and the United States should move ideally, in my view, to a zero-tariff situation," Musk said.
The world's richest man said he hopes that this would lead to the creation of "a free trade zone between Europe and North America."
Trump Has the Last Laugh
Trump's newly announced tariff hikes targeting "worst offenders" such as the European Union are scheduled to go into effect on Wednesday at 12:01 a.m. Eastern Time. Goods imported from the EU will be subject to a 20 percent tariff, while other nations like China will face significantly steeper rates.
Starting Wednesday, Chinese exports to the U.S. will incur a 54 percent tariff.
Prior to his recent remarks, Musk had largely remained silent about the sweeping economic shift.
Interestingly, the DOGE leader was noticeably absent from Trump's White House "Liberation Day" event, where the new tariff strategy was unveiled — prompting questions about his no-show. However, shortly before his virtual appearance, Musk slammed Trump's trade advisor Peter Navarro over his stance on free trade.
In response to a post on X that praised Navarro's economic credentials and his Harvard background, the Tesla CEO fired back, criticizing the advisor for having little real-world experience. "A PhD in Econ from Harvard is a bad thing, not a good thing," Musk wrote on X slamming Navarro.
"He ain't built s***," the SpaceX founder wrote.
