Close Menu
All Hail Trump
  • Home
  • Donald Trump
  • Hub
  • Latest News
  • Life
  • More Today
  • Policies
  • Today’s latest
    • Top Stories & Analysis
  • Politics

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

What's Hot

Trump’s DOJ Moves to Revive Grand Jury Inquiry into Russia Probe Origins — What’s Next

August 6, 2025

Apple shares pop 5% ahead of Trump-Cook announcement

August 6, 2025

Justice Department releases new list of so-called sanctuary jurisdictions

August 6, 2025
Facebook X (Twitter) Instagram
All Hail TrumpAll Hail Trump
  • Home
  • Donald Trump
  • Hub
  • Latest News
  • Life
  • More Today
  • Policies
  • Today’s latest
    • Top Stories & Analysis
  • Politics
All Hail Trump
Home»Latest News»Why Trump blinked on tariffs with a 90-day pause
Latest News

Why Trump blinked on tariffs with a 90-day pause

Robert JonesBy Robert JonesApril 9, 2025No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email


After a week of intensifying market turmoil, President Donald Trump stepped back from the brink of financial crisis Wednesday, announcing a 90-day “pause” on the exorbitant tariff levels he’d imposed on dozens of countries.

It was not a total climbdown: Trump intensified a trade war with China by hiking its tariff level up to 125 percent. And he is also keeping in place a 10 percent tariff for other countries. (Details on exactly which countries remained murky as of mid-Wednesday afternoon.)

But it was a significant step back.

So why did he do it? Why make such a dramatic announcement last week, and walk it back so relatively soon?

Though Treasury Secretary Scott Bessent initially claimed this pivot was part of Trump’s “strategy all along,” many outside observers saw this as market-driven, both because of the timing and because of remarks Trump himself later made (he said he shifted because people were “getting yippy” and “a little bit afraid”).

Since Trump’s “Liberation Day” announcement last week, stocks had lost 10 percent of their value. Even more concerning: US treasury bond yields were spiking. Trump’s team had been trying to drive bond yields lower, both so the US government would pay less interest on its debt and so the Federal Reserve would cut rates and lower borrowing costs for Americans.

Instead, yields went up, in ways that some feared could ripple outward and cause a financial crisis. This wasn’t what the Trump team had expected, so many speculated it was the reason for Trump’s sudden cave. (“The bond market is very tricky,” Trump said Wednesday afternoon. “Last night, people were getting a little queasy.”)

Investors were overjoyed at Trump’s partial walkback, as stocks quickly surged — though not all the way back to their pre-Liberation Day levels (they made up about half of their losses since then).

This relief may be largely about the seeming confirmation that, contrary to appearances of the past week, Trump is not totally heedless to market reaction and lobbying, disconnected from reality, and willing to wreck the business environment. The shift also suggests that Wall Street-aligned advisers like Bessent have gained the upper hand over anti-trade fanatics like Trump adviser Peter Navarro — for now, at least.

But there will likely be more tumult ahead. Trump’s trade war with China is still on. And though Trump’s team purportedly intends to work out deals with every other country he targeted, it is far from clear how such deals could realistically meet Trump’s (bizarre) goal of bringing the US into trade surplus with every major trading partner.

Furthermore, the chaos and uncertainty Trump caused may have a lasting effect, chilling businesses’ planning and doing damage to the economy. Because if he caused such a mess once, how do we know he won’t do it again?



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Robert Jones

Related Posts

Can Trump actually deport immigrants to Libya?

May 7, 2025

A federal court is about to decide whether to strike down Trump’s tariffs, in V.O.S. Selections v. Trump

May 7, 2025

Trump-Houthi ceasefire: What we know

May 6, 2025
Leave A Reply Cancel Reply

Our Picks

Trump’s DOJ Moves to Revive Grand Jury Inquiry into Russia Probe Origins — What’s Next

August 6, 2025

Apple shares pop 5% ahead of Trump-Cook announcement

August 6, 2025

Justice Department releases new list of so-called sanctuary jurisdictions

August 6, 2025

Marjorie Taylor Greene Asks Trump to Commute George Santos’ Sentence

August 6, 2025
Don't Miss

Apple shares pop 5% ahead of Trump-Cook announcement

Donald Trump August 6, 2025

Apple CEO Tim Cook speaks during the Apple Worldwide Developers Conference (WWDC) on June 09,…

Tim Cook to join Trump for Apple investment announcement

August 6, 2025

Trump raises India tariffs to 50% over Russian oil purchases

August 6, 2025

Trump trade deal investment pledges are intentions, say partners, not gifts

August 6, 2025

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

  • Home
  • About Us
  • Advertise With Us
  • Contact Us
  • DMCA
  • Privacy Policy
  • Terms & Conditions
© 2025 allhailtrump. Designed by allhailtrump.

Type above and press Enter to search. Press Esc to cancel.