- Trump says his new reciprocal tariffs will apply to all countries, not just a select few.
- Markets dipped on Monday as investors reacted to the uncertainty surrounding the plan.
- Economists warn the tariffs could spike inflation and slow growth, while Trump calls it “a beautiful transformation.”
Just days before his long-awaited trade policy rollout, President Donald Trump dropped a curveball: his “reciprocal tariffs” plan isn’t just aimed at a few countries—it’s coming for everyone.
“You’d start with all countries,” Trump told reporters late Sunday, speaking aboard Air Force One. “So let’s see what happens. There are many countries.” He followed that up with something kind of vague but definitely definitive: “There is not a cutoff.”
That directly contradicts earlier speculation that the tariffs would focus on a tight group—maybe the top 10 or 15 countries with the biggest trade imbalances or highest import duties on U.S. goods. Trump, when asked about that, shot it down real fast:
“Who told you 10 or 15 countries? You didn’t hear it from me.”
Tariff Talk Shakes the Markets
The market didn’t love the lack of detail. Monday morning saw all three major indexes fall sharply at the open. Later in the day, the Dow and S&P 500 clawed back into the green, but the early dip made it clear: investors aren’t exactly thrilled about more uncertainty on trade.
Some Trump officials had previously hinted that the tariffs would be more targeted. Treasury Secretary Scott Bessent recently called out the so-called “Dirty 15”—countries with especially lopsided trade relationships. And NEC Director Kevin Hassett mentioned that a small group (around 10 to 15) made up most of the U.S. trade deficit.
So yeah, Wall Street thought it had the playbook. But now… it’s more like scribbles in the margin.
Economists Are Flashing Warning Lights
The timing isn’t ideal, either. With inflation already sticking around longer than anyone hoped, more tariffs might stir the pot in all the wrong ways.
Goldman Sachs, in a Sunday client note, warned that aggressive tariffs could do two things: raise inflation and drag down economic growth. Not great.
Over at CNBC, a survey of 14 economists said the same thing—Trump’s plan could usher in something close to stagflation, that nasty mix of rising prices and a sluggish economy. Nobody wants that.
Trump Paints a Different Picture
At the White House though? It’s all sunshine and opportunity.
“It is a beautiful thing to watch!” Trump wrote in a post Monday, calling the current economy a “transformation”. He doubled down on the optimism in a pair of Truth Social posts, pointing to recent investment pledges from private companies as proof that things are, in his words, “booming.”
Whether or not you buy that framing probably depends on your view of how tariffs play out in the real world. But for now, one thing’s for sure: with this rollout coming Wednesday and no country officially off the hook, the global economy’s holding its breath.
