President Trump’s sudden tariff U-turn left investors relieved — and the world economy rattled.
Trump Tariff Pause came just days after sweeping new tariffs were announced, leaving markets and lawmakers scrambling. Markets crashed. Businesses panicked. And then, just days later, President Donald Trump pulled back.
The global economy came close to collapse last week. The president’s sweeping new tariffs pushed markets to the brink. Then, in a surprise move, the tariffs were mostly paused — for now.
A Week of Economic Chaos
The tariffs were announced in a flashy Rose Garden event on April 2. Trump called it “Liberation Day.”
A massive poster listed dozens of new tariffs. Some were as high as 125%. The message was clear — trading partners had to make a deal or face consequences.
Markets responded fast. Stocks plunged. Companies froze spending. Layoffs began.
By April 9, Trump stood in the Oval Office, smiling, as the stock market soared. He had reversed course just hours before.
“It’s called being flexible,” Trump said.
Investors Left Reeling
The pause triggered a market rebound. But the damage had already been done.
Wall Street experienced its worst drop since the pandemic. Business leaders were left stunned. Many warned of long-term damage to trust in U.S. leadership.
Even now, many tariffs remain. New taxes still hit imports from China, Canada, and Mexico. Auto, steel, and aluminum tariffs remain active. Trump paused tariffs on Japan, South Korea, and the EU for 90 days.
Global Fallout
Around the world, the backlash was real.
Tata Steel in the Netherlands slashed 1,600 jobs. Sri Lanka feared an export crisis. Stellantis paused production in Mexico and Canada. U.S. farmers, manufacturers, and retailers faced uncertainty.
Trump’s focus on trade deficits alarmed economists. Many said the tariffs were based on flawed logic. The inclusion of remote islands like Heard and McDonald only added to the confusion.
GOP Divided
Republican lawmakers were left scrambling. Some began to discuss limiting the president’s tariff powers. Trump responded with veto threats.
Sen. Thom Tillis asked bluntly, “Whose throat do I need to choke?” His state’s farmers feared economic ruin.
Sen. Ron Johnson shrugged. “Does anybody understand this?” he asked.
Even allies questioned the plan. Elon Musk and Peter Navarro clashed in public. Treasury Secretary Scott Bessent tried to reassure senators.
A group of GOP senators even turned to Sean Hannity, hoping Trump might listen to one of his favorite TV hosts.
Trump Retreats
On Wednesday morning, tariffs on key allies went into effect. But by afternoon, Trump posted to Truth Social. He paused most of the tariffs.
The market surged.
White House officials insisted it was part of the plan. But confusion reigned. Even Trump’s trade rep learned of the change in real-time during a hearing.
Rep. Steven Horsford called the situation “amateur hour.”
Press Secretary Karoline Leavitt pushed back. “You clearly failed to see what President Trump is doing here,” she told reporters.
What Comes Next?
The administration hasn’t reached any new trade deals yet. Negotiations are underway. But fear lingers.
Tariff threats still hang over dozens of countries. Trump has made it clear — the pause could end at any time.
As one former trade official put it, “How does anybody know he won’t change his mind on Friday?”
Source: AP News
