As global stock markets plunged on Monday, US President Donald Trump defended his controversial tariff policies, dismissing concerns over the economic impact. He said that the world leaders are "dying to make a deal" to negotiate the reciprocal tariffs.

With Asian markets opening to significant losses and US futures signalling further declines, Trump sought to downplay fears, suggesting that the market pain caused by his tariffs was a necessary "medicine" to fix longstanding trade imbalances.

On Sunday, Trump denied any intent to deliberately engineer a market selloff, insisting that he could not predict market reactions. He emphasised that he would not enter trade agreements with other countries unless they addressed the trade deficits.

"Sometimes you have to take medicine to fix something," Trump said, referring to the market volatility.

Since the onset of his tariff policies, trillions of dollars in market value have been wiped off the books of US companies, with investors bracing for further fallout.

Trump added that any market adjustment would be "temporary," soft-pedalling the severity of the situation.

Speaking to reporters aboard Air Force One, the US President added that he had been in contact with world leaders over the weekend and claimed that many countries were eager to negotiate a deal.

"They're dying to make a deal," he said, reiterating his stance that tariffs were a necessary tool to level the global playing field.

Despite the steep losses in global markets, which many feared could trigger a full-blown economic downturn, the Trump administration showed no signs of backing off from its aggressive tariff strategy.

China, in particular, announced retaliatory measures, further fueling concerns of an escalating trade war.

Economists have warned that if the US continues on its current path, the global economy could face a severe downturn.

Bruce Kasman, Chief Economist at JPMorgan, put the risk of a recession at 60 per cent, citing the potential for Trump's trade policies to tip a healthy global expansion into a crisis.

The turmoil in the markets has sparked comparisons to the 1987 "Black Monday" crash, which saw global markets lose $1.71 trillion in a single day.

CNBC's Jim Cramer warned that if Trump's trade policies continue, markets could face a similar catastrophic event. As the markets brace for another volatile week, all eyes remain on the White House and the next steps in the ongoing trade conflict.