The Art of the Deal or Retreat? How Trump Shifted Stance on Tariffs
It concluded not with a dramatic finale, but rather with US President Donald Trump along with two senior advisors composing a social media statement.
Trump's choice to halt the global tariffs concluded an unprecedented week marked by international turmoil following his announcement of these charges on what he referred to as "Liberation Day."
Following repeated denials that he was contemplating a pause, the initial indication that things were amiss emerged as markets prepared themselves for yet another challenging day.
"STAY CALM!" Trump encouraged Americans via his Truth Social platform at 9:33 am in Washington (1333 GMT), followed by stating it was an "EXCELLENT TIME TO PURCHASE!!!'
Few seemed to take the 78-year-old Republican seriously, and turmoil started to spread to usually safe bond markets.
However, Trump subsequently acknowledged that he had decided earlier on Wednesday morning to halt the tariff implementation.
The writer of "The Art of the Deal" is not commonly recognized for his modesty, yet he seemed to be in a contemplative state when responding to queries regarding the choice.
In recent days, I have been pondering this matter," Trump said to journalists in the Oval Office while signing several executive orders, which included one entitled "Ensuring Appropriate Water Pressure in Showerheads.
Trump said he then huddled early Wednesday with Scott Bessent, his bespectacled US Treasury Secretary, and Howard Lutnick, the brash Commerce Secretary and former trader.
“It likely came together very early this morning,” stated Trump. “We couldn’t consult with attorneys. We put it down based on our feelings, correct? It was crafted from the heart, and I believe it turned out quite well.”
A long message appeared on his Truth Social platform at 1:18 PM local time (1718 GMT), stating that Trump had decided to implement a 90-day HALT on tariffs, excluding those imposed on China, which faced increased duties raised to 125 percent.
Trump's administration insisted it was all part of a grand strategy that had brought 75 countries to the negotiating table in his quest to reduce America's trade deficit.
"A number of you in the press clearly overlooked the intricacies of negotiating deals," Press Secretary Karoline Leavitt said to the reporters following the incident.
Lutnick posted that he and Bessent "sat with the President while he wrote one of the most extraordinary Truth posts of his Presidency."
'Yippy'
The official Twitter account for The White House shared an image of President Trump seated at the Resolute Desk inside the Oval Office, alongside Lutnick and Bessent, with his smartphone positioned before him.
The platform also shared one of Trump's posts from 2014, which stated: "Making deals is my artistic expression. While others excel at painting masterpieces or composing poems, I prefer to strike deals, ideally large ones."
As markets experienced a rapid recovery, Trump welcomed a gathering of race car drivers accompanied by their vibrantly-hued vehicles at the White House.
Trump said the markets had become "a little bit yippy, a little bit afraid -- unlike these champions," as he pointed to the drivers.
The "Liberation Week" proved to be chaotic as the White House grappled with conveying a consistent stance on whether they were ready to engage in negotiations.
Over the weekend, Trump played golf in Florida, yet seemed irritable when returning to Washington. He remarked that "occasionally, you must administer medication to address an issue," alluding to the tariffs.
Lutnick, who has emerged as one of Trump's primary supporters, consistently stated that there would be no discussions taking place, echoing the stance of trade adviser Peter Navarro.
However, on Monday, Bessent was brought forward to convey a gentler stance suggesting that negotiations could potentially be feasible.
What followed was the remarkable spectacle of Trump's tariff-skeptical aide Elon Musk publicly branding Navarro "dumber than a sack of bricks."
But by Wednesday evening it was over -- for 90 days at least -- and the White House was keen to turn attention towards the stock markets, where the Nasdaq had its biggest single day leap since 2001, while the Dow Jones had its best day since 2020 and the S&P 500 its best since 2008.
Trump, who spent most of the week bashing allies and adversaries alike, struck a magnanimous tone about his announcement.
He stated that it was penned with a view to being highly beneficial both for the globe and for us.
