Following steep drops in the stock and bond markets and mounting pressure from corporate executives, legislators, and international allies, US President Donald Trump postponed a significant portion of his tariff proposal.
Hours after the tariffs went into force, the 90-day respite was declared on Wednesday. While meeting with Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick in the Oval Office, he posted the update on his social media accounts.
Shortly after the post, markets increased.
The break was part of the plan, Bessent added. He told reporters, “This was his strategy all along,” according to The Wall Street Journal.
He spoke with Trump about it on Sunday. Concerned about a potential recession, Wall Street had been phoning Bessent all weekend.
According to White House sources, Trump’s decision was prompted by a number of important considerations, including a declining bond market, rising demands from other nations looking to negotiate trade agreements, and criticism from prominent corporate figures such as Jamie Dimon, CEO of JPMorgan Chase.
Bessent, who is now regarded as having more influence inside Trump’s trade team, was instrumental in getting the president to take a break.
Trump’s inner circle claimed that while he was still dedicated to “taking pain” in order to achieve his bigger economic objectives, he did not want to run the danger of sending the nation into a depression. Days of lobbying by Capitol Hill and Wall Street led to the tariff halt. Executives warned that the tariff strategy may seriously harm the economy, and they turned to Republican senators to voice their worries.
The final decision was made Wednesday morning by Trump, who usually leaves advisers in suspense.
The US economy will “be back to firing on all cylinders” at some time in the “not too distant future,” according to Bessent, who previously stated that it could take months to finalize tariff agreements with other countries, as reported by AP.
He added that the tariff halt was met with a robust diplomatic response. He claims that the response from “the countries who want to come and sit at the table rather than escalate” has been “overwhelming.” “I will note that they are all around China,” Bessent said, naming South Korea, India, and Japan. Vietnam is arriving today.
