People were getting yippy’: Donald Trump’s 90-day pause triggers Wall Street surge – The Economic
Trump stunned markets and his own administration on Wednesday with a sudden reversal of his much-promoted tariff policy, halting his “reciprocal” tariffs for 90 days—with China as the only exception. The announcement, made via Truth Social, arrived during a live hearing where top trade officials remained unaware of the dramatic policy shift.
The pause came after escalating pressure from Republican allies, top business executives, and growing panic within financial markets. Even close friends and advisors were caught off guard by the swift U-turn after days of Trump insisting, “MY POLICIES WILL NEVER CHANGE.”
Bond Market Chaos Forces White House Pivot
Behind the scenes, the final push came from inside the Treasury Department. A sharp sell-off in U.S. government bonds raised alarms about potential long-term economic damage. Treasury Secretary Scott Bessent met with Trump on Wednesday morning to express urgent concerns, following an unprecedented drop in demand for new U.S. debt.
This unusual market behavior spooked financial experts. Typically, investors flood into U.S. Treasurys during stock market downturns. But this time, the reverse occurred—indicating a dangerous loss of faith among global investors.
Trump, ever sensitive to market moves and media commentary, reportedly monitored the situation closely. He told reporters, “The bond market right now is beautiful. But yeah, I saw last night where people were getting a little queasy.”
Political Calculations Behind the Retreat
Inside the Oval Office, Trump framed the reversal as part of a broader strategic maneuver. Bessent and Commerce Secretary Howard Lutnick joined him to draft the announcement “from the heart,” as Trump described it—downplaying the absence of legal review or formal planning.
Critics, however, say the president’s backpedaling undermined his administration’s credibility. During a Capitol Hill hearing, U.S. Trade Representative Jamieson Greer appeared unaware of the pause, prompting lawmakers to question the administration’s coherence.
Even so, officials like Bessent insisted the move wasn’t a retreat. “It took great courage for him to stay the course until this moment,” he said, suggesting the pause was always part of Trump’s strategy.
White House Phones Ring Off the Hook
Pressure from CEOs and Republican leaders had intensified throughout the week. Chief of Staff Susie Wiles reportedly played a key role in persuading Trump that the market collapse could damage his political capital, especially as lawmakers were inundated with angry calls from constituents.
Vice President JD Vance and others echoed these concerns, worried that the tariff fallout could overshadow other agenda items. Trump’s inner circle eventually concluded the policy needed rethinking—at least temporarily.
Market Rebound, But Confidence Shaken
Though the market rebounded slightly after Trump’s announcement, financial experts remained wary. JPMorgan CEO Jamie Dimon warned of a possible recession, calling it a likely result of continued trade uncertainty.
Trump dismissed concerns about his credibility, saying, “You have to have flexibility.” Yet for many, the whirlwind of reversals revealed the fragile foundation of current trade policy—and raised questions about what might come next.
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