Trump Defends Tariffs Amid CEO Meeting as Markets React

US President Donald Trump defends tariffs, suggesting they could increase further. Speaking to top American CEOs, he dismissed market volatility and downplayed concerns about a possible recession.

Trump Stresses Tariff Benefits to Business Leaders

Trump addressed around 100 CEOs at a Business Roundtable meeting, which included executives from Apple, JPMorgan Chase, and Walmart. The discussion came after a private White House meeting with tech industry leaders the day before.

During his speech, Trump insisted tariffs would generate significant revenue for the US and hinted at possible hikes. “The tariffs are going to be throwing off a lot of money for this country,” he told the audience. “It may go up higher.”

The room remained mostly silent, though there was some laughter when Trump jokingly mentioned disliking certain individuals in attendance.

In a closed session, Trump promised to speed up environmental approvals and lower corporate tax rates to 15% for US-based manufacturers. He also commented that markets had been overvalued weeks ago and noted that Chinese President Xi Jinping was displeased with the latest tariff measures.

Market Turmoil as Investors React to Tariffs

US stocks continued their decline on Tuesday, extending a selloff that has pushed the S&P 500 down 5.3% so far in 2025. Monday’s drop was the largest this year, following an interview where Trump refused to rule out a recession due to trade policies. On Tuesday, he sought to clarify, stating, “I don’t see it at all.”

Investors remain cautious about how tariffs will impact:

• Inflation – Higher import costs could drive prices up.
• Consumer confidence – Concerns about economic instability may affect spending.
• Corporate profits – Increased costs may reduce earnings for major companies.

Tensions Rise Over Trade War with Canada

Earlier in the day, Trump escalated his trade dispute with Canada, announcing plans to double tariffs on steel and aluminum to 50%. However, the White House later reversed course, keeping the rate at 25% after Canada agreed to negotiations.

Trump’s broader trade strategy includes:

• A 20% tariff on Chinese goods
• A 25% tariff on imports from Canada and Mexico, though most duties on US neighbors are suspended until April 2
• A planned global tariff policy, set to be unveiled in April

The administration argues that tariffs will force businesses to invest more in the US, while critics warn they could slow economic growth.

Business Leaders Express Concerns Over Tariff Strategy

Many CEOs and economists disagree with Trump’s trade approach, warning of potential long-term economic harm. The Business Roundtable recently stated that prolonged tariffs could create serious economic risks.

BlackRock CEO Larry Fink, speaking at an industry conference, warned that growing nationalism could lead to higher inflation.

Trump aides, however, maintain that short-term market fluctuations should not overshadow the need to rebuild American industries.

Trump’s Focus on Markets and Economic Policies

Throughout his presidency, Trump has closely linked stock market performance to his administration’s success. He frequently pointed to market gains during his first term and warned that stocks would fall if he lost re-election.

However, investors now worry that some of Trump’s policies could exacerbate inflation and weaken economic growth. While his tax cuts and deregulation efforts initially fueled optimism, concerns over labor shortages and higher costs from tariffs have dampened enthusiasm.

As Trump moves forward with his reciprocal tariff plan, markets will be watching closely to assess its economic impact and investor sentiment.

With inputs from Reuters