Politico was surprised that countries are not quickly raising their tariffs. Trading partners wonder what pain level he will sustain and who must concede first.
The bottom line is that when it comes to Trump today, “We don’t know what the pain threshold is,” said Brian Gardner, chief Washington policy strategist for investment banking firm Stifel Financial. Whatever it is, it’s “significantly higher than people had previously estimated.”
They needn’t wonder any longer. President Trump sees the trade deficits as existential and unsustainable. For that reason, he said, There is no level of pain too intolerable.
The 50 Nations who want to bargain
Top officials said on Sunday that more than 50 nations have approached the White House to begin trade talks since U.S. President Donald Trump rolled out sweeping new tariffs.
Since last Wednesday’s announcement, Treasury Secretary Scott Bessent also said more than 50 nations had started negotiations with the U.S. It appears to place Trump on the launch pad.
Neither Bessent nor the other officials named the countries or offered details about the talks.
We know Singapore, Taiwan, and Vietnam are looking for deals.
Taiwan’s President Lai Ching-te offered to enact a zero-tariff approach to trade with the United States on Sunday, becoming the third major economy to do so after President Donald Trump announced sweeping tariffs on imports from dozens of countries on April 2.
According to Global Finance Magazine, Taiwan—a top-20 economy in terms of GDP and purchasing power—is pledging to remove existing trade barriers rather than respond with new tariffs. The island nation is also pledging to increase its investment in the United States rapidly.
However, the tariffs do not apply to semiconductors, relieving a significant Taiwanese export. As of 2025, Taiwan accounts for 60 percent of the world’s semiconductor manufacturing and nearly 90 percent of the most advanced ones.
So far, the 17% tariff on Taiwan remains. Semiconductors are the ballgame.
TAIWAN PRESIDENT: We do not seek retaliatory tariffs against the US. Instead, we’ll increase US imports and work to “usher in a golden age of shared prosperity.”
— Election Wizard (@ElectionWiz) April 7, 2025
China
We have a trillion-dollar deficit with China. President Trump said it has to be solved.
China can solve this problem by allowing us to sell our products in China.
President Trump explained the parameters. The “tariffs are instituted, they are not going away,” Trump said.
The US isn’t going to have deficits. At worst, the US will be equal.
The Politico article suggests that Trump might get away with the tariffs. The author, Mr. Toosi, expected a stronger and quicker reaction from foreign nations.
Instead, except China and a few scattered reprisals from allies, we’re seeing mainly cautious reactions. Foreign officials are talking about “calibrated” responses and keeping a “cool head.” Some are clearly hoping diplomacy will persuade Trump to back off some or many of his tariffs.”
The foreign leaders he spoke with said, “… it’s not at all clear if any moves by other countries will deter Trump’s tariff mania.”
It’s clear now.
President Trump was asked about having a “threshold” of pain he is willing to tolerate. He said the “question is stupid.” We are responding to the opposition, who are playing a zero-sum game. There is no level of pain too intolerable when, ultimately, your survival as a nation is at stake. Either we do and win, or we do not and die; that is our current status.
When questioned about having a zero-tariff agreement with Europe, President Trump mentioned the scale of the imbalance. “There’s no talk possible” with the EU unless they acquiesce.
TRUMP:
“The European Union was formed for one reason.
You know what that was?
To rip off the United States.
Put that in your bonnet.
I hope you had a good flight!”
— Election Wizard (@ElectionWiz) April 7, 2025
Every country wants to make a deal, but President Trump said again that “this is not sustainable.”
Watch:
Politico’s Noosi writes:
…Countries had months to prepare for Trump’s tariffs, including devising their own menus of retaliatory actions.
But Trump, in his second term, seems to have a much bigger goal than he did in the past: a complete restructuring of the U.S. economy.
It appears to be a legacy issue for him, and from what we’ve seen so far, he doesn’t care as much as he did before about stocks sliding. Trump has even said Americans should expect short-term discomfort, indicating there could be a recession, while also saying that in the long-term, he will be proven to have done the right thing.
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