Trump Explains Shocking Reason Behind 90-Day Tariff Pause

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President Donald Trump mentioned he implemented a 90-day halt on his worldwide tariffs as people were getting excited about it.

The stock market plummeted following President Trump's initiation of the trade war, and he acknowledged that he had been monitoring the situation.

"I believed that some individuals were overreacting. They started becoming overly excited, you know, getting quite jittery and somewhat fearful," he stated at the White House while celebrating car racing champions with an award ceremony.

Trump added: 'The bond market is very tricky. I was watching it. But if you look at it now, it's it's beautiful. The bond market right now is beautiful. But yeah, I saw last night where people were getting a little queasy.'

Even though things have paused for now, additional developments could still arise.

The president cautioned that his statement on Wednesday might be 'short-term.'

"Everything isn’t finished yet, but we’ve received an incredible amount of support from various nations, such as China. They expressed their interest in making a deal," Trump stated.

They aren't sure about the speed at which they should proceed. These are proud individuals, and President Xi is certainly a proud leader; I understand this completely. They're uncertain about how to approach it, but eventually, they will work through the process of understanding what needs to be done. However, their main objective is still to reach an agreement.

Trump slapped Beijing with another round of import taxes after China had retaliated with tariffs on American goods.

The president stated: "I implemented a 90-day halt for those who chose not to retaliate since they were informed that if they retaliated, the response would be doubled. This is exactly what happened with China as they did retaliate. We will have to wait and see how everything unfolds. I believe it will turn out incredibly well."

Trump and his supporters maintained this was the strategy from the beginning.

Many of you in the media evidently overlooked the 'art of the deal'—you seemingly didn’t grasp what President Trump was accomplishing, White House press secretary Karoline Leavitt informed journalists gathered outside the White House.

'She pointed out that President Trump generated substantial negotiation power for himself,' she added, noting that the press 'obviously didn’t grasp what President Trump was accomplishing here.' She suggested that others believed the global community would be brought nearer to China , when actually, we've observed the contrary outcome; the whole world is referring to the United States of America rather than China for this reason—they rely on our markets."

Trump caused a stir in the markets Wednesday by announcing a 90-day halt to his tariffs, reverting to the initial base rate of 10 percent for all nations involved.

After China responded to the president's punitive tariffs with their own counter-tariffs, they faced an additional 125 percent tariff.

Trump’s retaliatory tariffs on about 100 countries came into play overnight, with a 104% tax imposed on goods from China. This occurred on Wednesday. Beijing mentioned it would increase tariffs on American imports to 84%, up from 34%.

Trump then hit back.

In light of China’s disregard for global market norms, I have decided to increase tariffs on Chinese goods imported into the United States to 125% with immediate effect," the president stated on Truth Social. "It is my hope that this change occurs soon, as the era where China could exploit both the US and other nations must come to an end.

Following the announcement of the halt, the markets experienced an uptick. The Nasdaq surged approximately 9%, the S&P 500 increased by about 8%, and the Dow Industrials grew by 6%.

"Purchase" was Trump's recommendation to investors earlier Wednesday prior to announcing the suspension of tariffs.

A week has passed since Trump declared his tariff intentions on Independence Day. During this timeframe, global markets have become extremely volatile, with economists forecasting an economic downturn. Both friends and rivals warned of an impending trade conflict, and investors have grown increasingly anxious.

The administration stated that the events of the week transpired exactly as Trump had intended.

'His strategy has been this from the beginning,' stated Treasury Secretary Scott Bessent. 'One could argue that he maneuvered China into a disadvantageous situation. In response, they acted. Now, they have revealed themselves as the aggressor to global audiences.'

Outside the White House, Bessent informed journalists that the hiatus would provide the administration an opportunity to engage in talks with over 75 nations that expressed their concerns following the president’s announcement of new import duties.

"It required immense bravery, tremendous courage for him to remain steadfast until now, and it has led to this point. Just as I informed all of you last week at this same location, 'Refrain from retaliation, and you shall receive your reward,'" he stated. "That is why every nation around the globe wishes to engage in negotiations," he added.

He mentioned that the 90-day period would provide the administration an opportunity to negotiate tailored, specific agreements with different countries.

'These solutions will each be custom-made; they'll require some time, and President Trump wishes to be directly engaged. This is why we’re implementing the 90-day delay,' he explained.

'Everything depends on the president's choice.'

He stated that 'all options are being considered' in the talks.

These are trade discussions; however, should nations wish to present additional items," he stated, "all options remain available.

Bessent additionally mentioned that sector-specific tariffs, such as those imposed on cars and medicines, would remain unaffected.

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