President Donald Trump announced a 90-day pause on the high tariffs he had placed on many countries. This came after a week of serious trouble in the stock market. Prices dropped fast, and people got nervous. Trump’s team had not expected that kind of reaction. So, Trump took a step back to calm things down. He did not remove all tariffs. But the pause was a big change in his trade war plan.
China Still Faces Higher Tariffs, Others Not Clear Yet
Even with the pause, Trump raised tariffs on goods from China. The new rate is now 125 percent. That is very high. For other countries, he kept a 10 percent tariff. But as of Wednesday, it was not clear which countries would still be affected. Some details were missing. The message was mixed. The pause helped a little, but many trade issues remain.
Big Market Drop Made Trump Change His Mind
Last week, Trump gave a big speech about trade. He called it “Liberation Day.” Right after that, the stock market lost 10 percent of its value. Bond yields also went up. That was a big problem. Higher yields make it harder and more expensive for the U.S. to borrow money. Trump’s team wanted bond yields to go down, not up. They wanted cheaper borrowing and lower interest rates. But the market went the other way. That’s why many people believe Trump changed course.
Trump Says People Got Scared and He Had to Act
Trump said the change was because people were “getting yippy.” He said folks were afraid. In his words, “The bond market is very tricky. Last night, people were getting a little queasy.” His comments made it clear that fear in the market played a big role. It was not all part of a long plan like his advisers claimed. It was a reaction to panic.
Wall Street Was Relieved After Trump Took a Step Back
After Trump paused the tariff plan, the stock market began to recover. It didn’t fully bounce back, but it did rise again. About half the losses were made up. Investors were happy to see Trump respond to market signals. They feared he might ignore all warnings and keep going. But his shift showed he still listens to market pressure — at least sometimes. That gave Wall Street some hope.
Business Advisers Gained Ground Over Trade Hardliners
This move also showed a shift in power inside Trump’s team. Treasury Secretary Scott Bessent and other pro-business voices seem to be gaining control. They may be pushing back against anti-trade advisers like Peter Navarro. For now, it looks like the business side of Trump’s team is winning.
Trade War With China Still Continues Without a Clear Plan
Even though Trump paused some tariffs, the trade war with China is still going. Trump still wants to make deals with all the countries he put tariffs on. But experts say that’s not easy. Trump wants the U.S. to sell more than it buys from every country. That’s a tough goal. It’s hard to force every country into a deal that gives the U.S. a trade surplus. Many say that idea just doesn’t work in real life.
Businesses Worry About What Might Happen Next
The sudden change in Trump’s plan shows how fast things can shift. That makes businesses nervous. One day, the government goes one way. The next day, it turns around. This kind of back-and-forth hurts business planning. Companies want to know what rules they will face. But with Trump, that’s hard to guess. Many fear he could change his mind again. The damage from this round may last longer than the pause itself.
