Trump Announces 90-Day Tariff Pause Amid Market Turmoil
President Donald Trump has announced a 90-day pause on global tariffs, citing concerns that people were becoming overly anxious. During an event at the White House honoring car racing champions, Trump remarked that he observed market fluctuations and felt people were "getting a little yippie," a reference to the "yips" experienced by golfers when they struggle with their game.
Trump described the current state of the bond market as "beautiful," acknowledging that there had been some unease among investors. He referred to this period as a "transition to greatness" and hinted at the possibility of exempting certain U.S. companies from tariffs during the pause, indicating that his decisions would be made "instinctively."
Despite the temporary reprieve, Trump cautioned that more challenges could arise. He emphasized ongoing negotiations with China, stating that while the situation is fluid, "China wants to make a deal." He noted that the Chinese leadership, particularly President Xi, is proud and may be uncertain about how to proceed.
The president's announcement came after a week of significant market volatility triggered by his initial tariff plans. Trump had previously imposed tariffs on nearly 100 countries, with particularly steep rates for China, which faced a 125% tariff after retaliating against U.S. measures.
White House press secretary Karoline Leavitt asserted that Trump's strategy was deliberate, claiming he created "maximum negotiating leverage." Treasury Secretary Scott Bessent echoed this sentiment, suggesting that Trump's approach successfully positioned China as a "bad actor" on the global stage and encouraged other nations to negotiate.
The 90-day pause aims to facilitate tailored agreements with various countries, allowing for specific negotiations that could address individual concerns. Bessent noted that the negotiations are open-ended, with "everything on the table," including sector-specific tariffs that will remain unchanged during this period.
As markets continue to react to the evolving trade landscape, the administration is optimistic about the potential for positive outcomes from these negotiations.
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