US President Donald Trump's tariff policy has caused serious concern in international financial markets. According to Reuters, stock prices on major Asian stock exchanges have fallen significantly as the president remains firm on his plans for large-scale tariffs.
Investors believe that the US Federal Reserve could cut interest rates as early as May amid the threat of an economic recession. Financial markets have reacted quickly, predicting that interest rates in the US could be cut five times this year, each by 0.25 percentage points. These forecasts have led to a sharp decline in government bond yields and a weakening of the dollar against stable currencies.
The situation escalated when Trump told reporters that investors should "take the medicine" and that he would not make a deal with China until the US trade deficit was resolved. The Chinese authorities countered, noting that the markets' reaction had already shown the impact of possible countermeasures.
Despite the market's sharp reaction, Trump will not change his position on tariffs, which has been formed over decades.
