Tariffs, Treasury, Turmoil: Why Donald Trump Backed Off His Plan – News18
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Trump Tariffs Pause: Trump’s decision to pause his long-promised reciprocal tariffs came just a day after he had appeared fully committed to them
US President Donald Trump (Reuters Image)
Trump Tariffs Pause: President Donald Trump’s unexpected decision to pause his sweeping tariff plan for three months revealed the limits of his political tolerance, just one week after the backlash began, CNN reported
“They were getting yippy,” Trump said, according to CNN, referring to the mounting criticism aimed at the White House. “They were getting a little bit yippy, a little afraid.”
Even for a president known for frequent policy reversals, the news outlet described Wednesday’s announcement as a stunning turnaround. Trump’s decision to pause his long-promised reciprocal tariffs came just a day after he had appeared fully committed to them, even as his trade representatives were touting their benefits on Capitol Hill—unaware of the impending change.
Despite days of pressure from fellow Republicans, business leaders, and close allies, Trump had remained defiant, asserting last week on social media, “MY POLICIES WILL NEVER CHANGE,” as reported by CNN.
Bond Market Turmoil Drives Economic Concern
Yet, as CNN noted, by midweek, it became clear the pressure campaign wasn’t letting up, especially amid a sharp sell-off in US government bonds, a traditionally stable market, prompting fears that the economic fallout of the tariff plan could be more severe than anticipated.
According to sources cited by CNN, growing concerns inside the Treasury Department played a critical role in Trump’s shift. Treasury Secretary Scott Bessent reportedly raised alarms during a meeting with the president, a conversation that preceded the pause announcement.
Allies and Executives Intensify Lobbying
According to the report, the bond market sell-off had also become a central focus of phone calls from business leaders and allies trying to persuade Trump to reconsider. Two sources told CNN that Trump had not yet decided on the tariff pause when he took to social media Wednesday morning to comment on the stock market.
Later that day, however, he acknowledged to reporters that he had been closely monitoring the bond market’s volatility.
“The bond market is very tricky, I was watching it,” Trump said. “The bond market right now is beautiful. But yeah, I saw last night where people were getting a little queasy.”
Oval Office Decision-Making: “Written From the Heart”
CNN reported that Trump, joined in the Oval Office by Bessent and Commerce Secretary Howard Lutnick, drafted the announcement himself. “We didn’t have access to lawyers or—it was just wrote up,” Trump explained. “We wrote it up from our hearts, right? It was written from the heart.”
Even as markets steadied in response to the pause, CNN highlighted that Trump stirred new uncertainty by suggesting he might grant tariff exemptions to certain US companies based on instinct rather than strategy.
In what CNN described as a whirlwind day at the White House, officials scrambled to keep pace with the president’s abrupt decision. Trump took a premature victory lap, touting a one-day market rally without acknowledging the trillion-dollar losses of the previous week.
“It’s the biggest increase in the history of the stock market. That’s pretty good,” he told reporters. “If you keep going, you’re going to be back to where it was four weeks ago.”
Many in the administration learned of the pause at the same time as the public, via a post on Truth Social. Even Trump’s top trade official, US Trade Representative Jamieson Greer, appeared unaware. CNN reported that during a House hearing underway as the news broke, Rep. Steven Horsford told Greer, “It looks like your boss just pulled out the rug from under you and paused the tariffs.”
The administration’s economic team had been fixated on the bond selloff that escalated Tuesday and worsened overnight. CNN reported that unusually weak demand at a Treasury auction added to concerns, flipping historical trends and heightening market anxiety.
While Bessent had downplayed the selloff on television earlier that morning, behind closed doors, Treasury officials were deeply concerned, and Trump was paying close attention.
Warnings From Business Leaders
The news outlet also reported that Trump was watching Fox Business when JPMorgan Chase CEO Jamie Dimon warned that a recession was “a likely outcome” of the trade war stemming from Trump’s tariff policies.
“Markets aren’t always right, but sometimes they are right,” Dimon said.
Inside the White House, calls from business leaders, Republicans, and other allies flooded the phones of Chief of Staff Susie Wiles, Vice President JD Vance, and Secretary Bessent. Wiles, in particular, was said to have persuaded Trump that the market downturn was eroding valuable political capital.
Messaging Shift Attempts to Salvage Narrative
In media appearances, Bessent continued to insist the tariff pause aligned with Trump’s broader strategy. “This was driven by the President’s strategy,” he told CNN. “He and I had a long talk on Sunday, and this was his strategy all along.”
Still, Trump admitted he had been tracking the markets closely. “Glum,” he said of recent performance.
Standing outside the White House a week after rattling the global trading system, Trump sought to recast the reversal as a demonstration of flexibility.
“You have to have flexibility,” he said. “I think in financial markets, because they change, look how much you change today.”
US Stock Markets On Wednesday
On April 9, 2025, US stock markets experienced significant gains following President Trump’s announcement to pause new tariffs on most countries for 90 days. The S&P 500 surged 9.5%, closing at 5,456.90, while the Dow Jones Industrial Average rose 7.9%, ending at 40,608.45. The Nasdaq Composite led the rally with a 12.2% increase, closing at 17,124.97. This marked the Nasdaq’s largest single-day percentage gain since January 2001.
