In a dramatic turn of events, former US President Donald Trump reversed his hard stance on trade tariffs just hours after declaring he wouldn’t change course. Despite his bold words—“My policies will never change”—Trump announced a 90-day pause on higher trade tariffs for most countries, excluding China.
This sudden U-turn came after massive pressure from business leaders, Republican lawmakers, and financial markets. The impact was immediate and global, affecting stock markets, trade relations, and Trump’s credibility.
What Triggered Trump’s Tariff Plan?
On April 2, Trump held a press conference in the White House Rose Garden, declaring a sweeping plan for new “reciprocal” tariffs. His goal was to restore America’s manufacturing power and fix trade deficits. He called it “a declaration of economic independence.”
His method? A strange formula based on how much each country imports to the US compared to exports—leading to odd results, such as tariffs against remote islands inhabited only by penguins.
Trump’s core message: America has been ripped off for too long. Now, it’s “our turn to prosper.”
Financial Markets React Badly
The announcement triggered chaos in financial markets, marking the most unstable period since the COVID-19 lockdowns. The Dow Jones dropped sharply, and tech giants like Apple saw their stock value plummet. Analysts warned iPhone prices could rise by 43% due to increased costs.
Former Treasury Secretary Larry Summers called it “the biggest self-inflicted wound on the economy in US history.” Even Trump’s loyal corporate backers started to feel regret.
Pressure Builds Within the White House
Even Trump’s inner circle began to worry. Elon Musk publicly clashed with trade adviser Peter Navarro, calling him “a moron” over how the tariffs would hurt Tesla. Meanwhile, Treasury Secretary Scott Bessent rushed to Trump’s Mar-a-Lago resort to beg for a more reasonable plan.
Despite golfing during the turmoil, Trump was reportedly monitoring the bond market and noticed people were, in his words, “getting a little queasy.”
Republican Leaders Speak Out
Some Republican leaders, usually silent on Trump’s actions, broke ranks. Senator Ted Cruz warned that tariffs are just another tax on consumers, stating, “I’m not a fan of jacking up taxes on American consumers.”
Political expert Larry Jacobs commented that Trump’s presidency is showing signs of being “endangered,” an extraordinary statement just three months into his term. “The response from Republicans has been unusually strong,” he said.
Trump’s Climbdown: A 90-Day Pause
Facing backlash, Trump finally backed down. On April 9, he announced a 90-day pause on the new tariffs—except on China—and invited other countries to negotiate bilateral trade deals.
Democratic strategist Antjuan Seawright said, “Trump wants to play hardball with a soft bat. He always caves under pressure.”
Still, the White House spun the retreat as a strategic move. Deputy Chief of Staff Stephen Miller tweeted, “You are watching the greatest economic master strategy from an American president in history.”
The Trade War with China Heats Up
While other countries got a temporary break, China did not. Trump raised tariffs on Chinese goods to a massive 145%. China hit back with its own tariffs and even threatened to restrict rare earth mineral exports, which are crucial for US tech companies.
This ongoing trade war could further hurt American consumers, with higher prices expected for everyday items like clothing, electronics, and appliances.
Can the US Be Trusted?
The bigger problem is the uncertainty Trump’s decisions have caused. Investors, world leaders, and even US allies are unsure if America is still a reliable partner. The 90-day pause may have calmed markets temporarily, but confidence in US leadership and economic strategy has taken a major hit.
Political expert Larry Sabato said, “America is no longer trusted—whether in defense, international relations, or economics. It’s sad.”
Conclusion: What Lies Ahead?
Trump’s sudden U-turn may have prevented immediate economic disaster, but the long-term damage is done. Business leaders, voters, and global partners are questioning the US’s stability. With China continuing to retaliate, and America’s credibility shaken, the road ahead looks rocky.
Whether Trump can secure better trade deals in the next 90 days remains unclear. What is clear, however, is that bold declarations without sound economic planning can have massive consequences—not just for America, but for the entire world.
