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In an unanticipated announcement that shocked global markets, President Donald Trump stated he would suspend the implementation of new tariffs for 90 days, a decision which unequivocally alleviated economic pressure on many nations while controversially increasing punitive measures against China.
The announcement took place a day after obligations were set. There had been a period of market volatility which has seen trillions in stock values across the world become worthless and bond yields in the US surge. The S&P 500 was able to recover more than 9%, and the global markets followed.
The administration justified the new direction in X in stronger language than customary: “DO NOT RETALIATE AND YOU WILL BE REWARDED” alongside Treasury Secretary Scott Bessent’s remarks to the press outside the West Wing.
“I made it clear here last week - do not retaliate and you will be rewarded,” Bessent said. “A week ago today, we witnessed the negotiating strategy that President Trump executed. The amount of courage it took — great courage — for him to stay the course until this moment is worth commending.”
Bessent spoke about the proposal from the US side which indicated that all the countries willing to negotiate with the US will have a tariff free access during the 90-day period which would be baseline set at 10% while China would face stronger penalties.
“We are willing to hear every country in the world who wish to come and negotiate, he'd said. “For them, we are going to set a baseline of 10% tariff. And China will have their rate raised to 125 due to their inflating posture.”
“I have authorized a 90 day PAUSE and a controlled Tariff of 10%, also effective immediately,” Trump told his followers on Truth Social, confirming the policy shift in a Truth Social post.
But at the same time, the tariff on goods coming from China will increase to 125% further straining the already fragile relationship between the two global powers.
In response, Treasury Secretary Bessent has upheld the approach as deliberate rather than reactive. “This was the president’s strategy. He and I spoke at length on Sunday, and this was his plan from the beginning,” Bessent claimed. “Some would suggest he baited China into a poor choice, and they did bite. They have proved to the world that they are terrible actors.”
A Bessent source recounting for CNN claimed Bessent had dinner with Trump at Mar-a-Lago, where he argued for stronger efforts towards new trade deals. Bessent told me that Trump would still be active in the deal’s discussions.
Trump is the unrivaled master of crafting leverage for himself,” Bessent declared.
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