Here’s why Trump did it
US President Donald Trump has no plans to delay his latest round of tariffs despite mounting financial chaos across the world, according to Commerce Secretary Howard Lutnick.
Speaking on CBS’s Face the Nation on Sunday, Lutnick said, “There is no postponing, they are definitely going to stay in place for days and weeks. That is sort of obvious.”
Lutnick defended the administration’s decision, insisting, “The president needs to reset global trade.”
Trump tariff’s Penguins saga
The interview took an unexpected turn when host Margaret Brennan pressed Lutnick on why had Trump slapped tariffs on the Heard and McDonald Islands, an uninhabited Australian territory near Antarctica, home only to penguins and seals?
“When we saw the president stand in the Rose Garden holding up that chart that you helped make — that wasn’t actually tariffs,” Brennan pointed out.
“That was actually confusing to investors because it was some kind of other formula, and the countries themselves seemed kind of random,” she said.
She then asked, “Why are the Heard and McDonald Islands, which don’t export to the United States and are quite literally inhabited by penguins, why do they face 10% tariffs? Did you use AI to generate this?”
Lutnick laughed off the suggestion, replying, “No!”
Lutnick: “No loopholes — Not even for penguins”
Lutnick said, “Because the idea, what happens is if you leave anything off the list, the countries that try to basically arbitrage America go through those countries to us.”
He continued, “The president knows that. He’s tired of it, and he’s going to fix that. So basically, he said look, I can’t let any part of the world be a place where China or other countries can ship through them. So he ended those loopholes, these ridiculous loopholes.”
Also read: Falling in line after Trump’s tariffs? Over 50 countries rush to negotiate with US – Who are they?
Market meltdown over Trump tariffs
Trump’s tariff announcement on Wednesday, which included a 10% blanket levy on all imports and even steeper charges for certain nations, such as a 34% tariff on Chinese goods, has sent global markets into a downward spiral.
More than $6 trillion was wiped off stock markets following the announcement, sparking calls for the administration to pause or reconsider the plan to allow breathing room for new trade negotiations.
(With inputs from agencies)
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