Trump Likens Tariffs to ‘Medicine’ as Global Markets Tumble Amid Black Monday Fears
As fears of a market collapse similar to the infamous Black Monday of 1987 gripped investors worldwide, US President Donald Trump on Sunday defended his newly imposed tariffs, likening them to “medicine” necessary to cure long-standing trade imbalances.
Speaking to reporters aboard Air Force One while returning from a weekend in Florida, Trump signaled no intent to backtrack on the sweeping tariffs announced on April 2. The tariffs include a 34% levy on Chinese imports, 26% on Indian goods, and 20% on products from the European Union.
“I don’t want anything to go down, but sometimes you have to take medicine to fix something,” Trump said. “We have been treated so badly by other countries because we had stupid leadership that allowed this to happen!”
Trump’s tariff move has triggered sharp sell-offs across global markets, with nearly $6 trillion wiped off the value of US stocks in just a few days. Asian markets opened with deep losses: Hong Kong’s Hang Seng Index fell 8.8%, Singapore dropped over 7%, and Malaysia shed 4%. Taiwan’s tech bellwether TSMC slumped 10%, while German stock futures plunged 5%. Australia also faced steep losses with its market down 6.4%.
Oil prices sank to their lowest levels since 2021, compounding fears of a global economic downturn.
Despite the turmoil, Trump remained firm on his tariff policy, arguing it was the only way to rectify America’s growing trade deficit.
“We have massive financial deficits with China, the European Union, and many others. The only way this problem can be cured is with tariffs,” he later posted on Truth Social. “Some day people will realize that tariffs, for the United States of America, are a very beautiful thing!”
He claimed the new tariff regime is already generating tens of billions of dollars in revenue for the country and promised a quick reversal of the current trade imbalance.
Market analysts and investors have raised alarm over the unfolding crisis. Television personality and financial commentator Jim Cramer warned of a possible “bloodbath” in global markets on Monday, April 7, drawing comparisons to Black Monday — the catastrophic crash of October 19, 1987, when the Dow Jones Industrial Average fell 22.6% in a single day.
While the scale of the current downturn remains to be seen, the growing panic has led to a cautious outlook heading into the week’s trading sessions.
Trump mentioned he had engaged with several world leaders over the weekend, claiming they were “dying to make a deal.” However, he made it clear that any dialogue on tariff reductions would only follow concrete steps by trading partners to reduce deficits with the US.
“They’re going to have to do that. And if they want to talk about that, I’m open to talking. But otherwise, why would I want to talk?” Trump remarked.
As financial markets brace for further volatility, economists warn that prolonged uncertainty could weigh heavily on global growth. With the US entering a critical election year, Trump’s hardline trade stance is expected to remain a central theme of his campaign.
Meanwhile, investors and global policymakers will be watching Monday’s market movements closely, hoping history does not repeat itself.
