Snap Insight: Why Trump blinked on tariffs, after days of market carnage
- noemieviterale
- 21 hours ago
- 1 min read
President Donald Trump paused his steep tariffs due to the bond market, but more market turmoil may come, says US politics expert Steven Okun.
SINGAPORE: “To the many investors coming into the United States and investing massive amounts of money, my policies will never change,” President Donald Trump posted on Truth Social days after announcing “Liberation Day” tariffs on Apr 2.
So much for that. His tariff policy did not last a week, let alone a lifetime. Just 13 hours after sweeping “reciprocal” tariffs came into effect on Wednesday (Apr 9), Mr Trump reversed course, rolling out a 90-day pause.
This still leaves the flat 10 per cent “universal” rate for most countries. And the tariffs on China remain.
THE ONLY REACTION DONALD TRUMP CARES ABOUT
The markets have accomplished what a small band of Republicans in the Senate and a small but growing voice in the investment community could not – get Mr Trump to reverse a policy that would harm the US.
Before the pause, US equities shed trillions. Bonds, essentially loans to the US government, sold off, too – yields spiked to 4.5 per cent on Wednesday morning.
That’s when Mr Trump blinked.