Tariff Shift: Donald Trump Flips Scenario within a Day on Customs Duties
Rewritten Article:
In the wee hours of a Wednesday morning, the world was in for quite a shock. Donald Trump, the American president known for his fiery tweets, took a surprising U-turn on his trade policies, sending markets into a frenzy. Here's the story of this dramatic about-face that left everyone on edge.
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It's 9:33 AM in Washington, and on Truth Social, Trump posts a terse message: "Hang tight," he writes in all caps. He promises: "No worries, everything will be alright". As this message circulates, no one could foresee the rollercoaster the global economy was about to embark on. Later that day, it would become clear that the American president was about to make one of the most breathtaking turns of his tenure.
An Unprecedented Trade Policy Reversal
Morning comes, and the tension intensifies
Even as he urges his fellow citizens to stay calm, new tariffs are taking effect. China faces increased tariffs ranging from 10% to over 100%, and Europe, Japan, and South Korea feel the weight of a 20% tariff. A week prior, the announcement of this policy sent shockwaves through financial markets, raising the specter of a global trade crisis. Jokes circulate online: with tariffs even hitting relatively remote locations like penguin-inhabited islands, it seemed like no one was safe. Other users joke about a simplified mathematical formula, crafted by the White House, used to advocate for increased tariffs.
The Dramatic Reversal of Donald Trump's Tariff Policies
A tweet, a turning point
European markets close in the red. Wall Street opens with uncertainty. Then, suddenly, at 1:18 PM, everything changes: a new message drops on Truth Social. This time, Trump announces a "temporary halt" of 90 days for America's trading partners. Tariffs are now reduced to 10% for all, except China, which faces increased tariffs of up to 125%.
Strategy or an impromptu decision?
The effect on markets is immediate: the Stock Market rises. Trump's aides and advisors scramble to shape the narrative. Treasury Secretary Janet Yellen defends a strategic line: "It was always part of his plan, and one could say he caught China off guard". Others praise his bravery, his instincts as a negotiator, and his keen sense of making a "deal." Behind closed doors, however, the scene is different. At a racing champions' event, Trump admits that he closely monitored the bond market, which was strained by recent tensions. He acknowledges that his trade offensive scared investors.
Navigating the Stock Market: Sell, Buy, or Wait?
A few hours later, seated in the Oval Office, Trump signs a series of executive orders, including one to improve shower flow rates in the U.S., an old presidential obsession. It's there, amidst the dispensation of signatures, that he shares the story behind his U-turn: "I suspect it was decided early this morning", he reveals. "It felt right to me", he adds, explaining that he doesn't want to cause undue harm to countries that have shown willingness to negotiate. By his side, Howard Lutnick and Janet Yellen. Curiously absent: Peter Navarro, Trump's hardline trade advisor.
Donald Trump's Trade War Strategy: A Shift in Perspective
Facing the press, Trump explains his decision: "Flexibility is key", he declares confidently. This statement contrasts starkly with his past vows to "never back down" and to make the American people swallow the "bitter pill" of tariffs. But the result is clear: the President of the United States is celebrating the remarkable surge in markets. "I didn't realize the impact it would have", he remarks, impressed by the 7.87% rise in the Dow Jones – the biggest gain since 2008 – and the 12.16% spike in the Nasdaq – an unprecedented performance since 2001.
Dow Jones and Nasdaq: CAC 40 and the Potential for Another Market Crash – Robert Merton's Warning
A final message posted earlier in the day on Truth now seems exceptionally ironic: "It's time to invest!" Those who heeded this advice from the Republican billionaire certainly did so to great benefit. In the span of 24 hours, Donald Trump will have simultaneously triggered, diffused, and profited from the crisis he himself engineered. However, several Democratic lawmakers have since raised suspicions, suggesting that the American president may have illegally manipulated the markets by encouraging stock purchases just before his shocking reversal on tariffs. Stay tuned for more updates on this story.
Key figures in the trade policy landscape include:
- Donald Trump: As the U.S. President, Trump has played a central role in shaping America's trade policies, including tariffs and negotiations with global partners.
- Janet Yellen: Serving as the U.S. Treasury Secretary, Yellen has been instrumental in crafting and executing trade strategies under the Joe Biden administration.
- Howard Lutnick: A prominent business figure, Lutnick's influence may have played a role in shaping Trump's trade policies, given his close relationship with the former president.
- Peter Navarro: Known for his hardline stance on trade, Navarro served as Trump's trade advisor during his tenure, challenging the president's softer approach at times. The reasons for his absence during Trump's U-turn remain unclear.
- In the midst of increased tariffs affecting countries such as China, Europe, Japan, and South Korea, global markets were on edge due to the unpredictable nature of Donald Trump's trade policies.
- After a sudden announcement of a temporary halt on tariffs on 90 days, followed by a reduction to 10% for all countries except China (which faces increased tariffs of up to 125%), it was apparent that the business world, finance, and politics were watching Donald Trump's trade policies with great interest, with significant implications for the general news landscape.
