Trump Officials Try to Reassure Markets Amid Tariff Turmoil

Amid rising market anxiety and growing global backlash, Trump administration officials on Tuesday defended the president’s aggressive tariff strategy, portraying it as a necessary reset for the U.S. economy.

Speaking before the Senate Finance Committee, Jamieson Greer, the U.S. Trade Representative, said the country was undergoing a “moment of drastic, overdue change,” arguing that years of dependence on the financial sector and government spending had weakened America’s trade position.

President Trump’s recent decisions to impose a 10% global tariff and “reciprocal” tariffs on dozens of countries have sparked fears of a full-blown trade war—especially with China. Several nations are already planning retaliation, and economists warn that a recession could be on the horizon.

Still, Trump remains defiant. He insists his trade agenda will revive American manufacturing and believes that foreign nations are eager to strike new trade deals with the U.S. On Tuesday, he posted about a conversation with South Korea’s acting president, Han Duck-soo, and said Korean officials were en route to Washington for talks. He also hinted at potential negotiations with China.

“China also wants to make a deal, badly, but they don’t know how to start,” Trump wrote. “We are waiting for their call. It will happen!”

Greer echoed that optimism in his testimony, noting that nearly 50 countries had approached the U.S. about achieving “reciprocity” in trade. “Our trade deficit has been building for over 30 years. Fixing it won’t happen overnight—but we’re moving in the right direction,” he said.

Democrats pounced on the market chaos to criticize the administration’s strategy. “The U.S. economy has gone from the envy of the world to a laughingstock faster than March Madness ended,” said Senator Ron Wyden of Oregon. “Trump’s tax on the American people has no clear purpose or plan.”

Even Republicans expressed unease. Senate Finance Chair Mike Crapo urged caution, saying tariffs could burden U.S. families. “We must balance the costs of tariffs with the costs of missed trade opportunities,” he said.

Markets, which had dropped in previous days, rebounded slightly on Tuesday after Treasury Secretary Scott Bessent tried to calm investor nerves. He told CNBC that over 70 countries had reached out to negotiate reductions in tariffs.

“I think we’ll see big players with big deficits step forward quickly,” Bessent said. “If they bring solid proposals, we can get good deals.”

Still, Bessent criticized China for its retaliatory tariffs and suggested the U.S. holds the upper hand in any trade fight. “They export five times more to us than we do to them—that’s not a winning hand for them,” he said.

During Trump's first term, similar tariff battles—especially with China—forced the U.S. to spend around $23 billion to support farmers impacted by Chinese retaliation on key exports like soybeans and corn.