Trump's Tariff Reversal Driven by Economic Fear, Not Strategy

While supporters of Donald Trump hailed his sudden shift on tariffs as a strategic move, Fox Business correspondent Charles Gasparino offered a different perspective. He stated that the White House had, in fact, capitulated. This assessment came shortly after the announcement of a 90-day pause on the president's proposed tariffs.

The president's reversal followed a week of global market turmoil triggered by his broad tariffs. Although he increased import taxes on China, Trump simultaneously paused the implementation of other tariffs he had announced. He initially attributed the change to countries agreeing to renegotiate trade agreements. However, he later acknowledged that the decision was primarily driven by concerns about financial market instability.

Trump admitted that he noticed unease in the bond market, which prompted his action. The news of the paused tariffs led to a surge in stock indexes. Despite this, Gasparino maintained that the president had backed down under pressure, even though Treasury Secretary Scott Bessent claimed the pause was always the plan.

Gasparino emphasized that the White House had yielded to market forces. He explained that the bond market's reaction, with rising yields on 10-year bonds, was the primary reason for the change. He noted the potential for economic disruption if the lending market was negatively impacted.

Gasparino acknowledged that Trump had put China "in the corner" but reiterated that the primary reason for the tariff pause was the impending economic collapse. He stressed the importance of the bond and lending markets, which were showing signs of distress. He concluded that the 90-day freeze was a direct response to these market conditions, and the success of the pause would depend on whether those markets improved.