Trump tariffs live updates: US won't drop China tariffs without something 'substantial'

When asked if President Donald Trump still believes in the independence of the Federal Reserve, White House press secretary Karoline Leavitt said Trump is allowed to be displeased with Chairman Jerome Powell and echoed his desire for lower interest rates.

"The president believes that they have been making moves and taking action in the name of politics, rather in the name of what's right for the American economy," Leavitt said of Trump's view on Powell.

"The president has the right to express his displeasure with the Fed and he has the right to say he believes interest rates should be lower. He believes Americans should be able to borrow money cheaper than they currently are right now," she continued.

-ABC News' Kelsey Walsh

White House press secretary Karoline Leavitt discussed the latest in the tariff negotiations with other countries on Tuesday.

She claimed that "18 proposals on paper that have been brought to the trade team."

"We are moving at Trump speed to get these deals made," she said.

New projections released Tuesday by the International Monetary Fund forecast tariffs will hurt global economic growth, and that the U.S. economy will take a bigger hit than other large countries.

The IMF now projects global growth to drop 2.8% in 2025 and 3% in 2026 -- down from 3.3% for both years from its January 2025 report.

"The global economic system under which most countries have operated for the last 80 years is being reset, ushering the world into a new era," wrote Pierre-Olivier Gourinchas, the fund's economic counselor.

The U.S. economy is expected to grow at 1.8% in 2025 -- down from 2.7% when the fund's last forecasts were published in January.

The Chinese economy is expected to suffer to a lesser extent. The fund cut its growth forecasts for this year to 4% from 4.6% for China, and projects eurozone growth at 0.8%, down from the previous forecast of 1%.

-ABC News' Zunaira Zaki

Stocks are rallying early Tuesday as markets attempt a recovery following a battering amid fears that President Donald Trump will attempt to fire Federal Reserve chairman Jerome Powell.

The Dow Jones Industrial Average rose about 800 points, or 2.0%. The S&P 500 gained 2%, and the Nasdaq climbed more than 2%.