Trump Comments on Tariff Suspension, Citing Public Concerns
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Synopsis
On April 10, President Trump announced a pause on his reciprocal tariffs due to public concern, particularly stating that some were becoming 'yippy' and 'afraid.' This change impacts over 75 countries, while tariffs on China remain significantly high.
Key Takeaways
- Trump pauses most reciprocal tariffs.
- 10 percent tariffs for non-retaliatory countries.
- China tariffs raised to 125 percent.
- Market turmoil prompts calls for negotiation.
- Trump reassures the public about market stability.
Washington, April 10 (NationPress) US President Donald Trump revealed that he has decided to pause the execution of most of his "reciprocal" tariffs as some individuals were becoming "yippy" and "a little bit afraid".
Trump declared a reduction in tariffs to a mere 10 percent for imports from all trading partner nations that have not retaliated with tariffs on American products, affecting over 75 countries that have approached the administration to discuss potential agreements, including India, which is currently negotiating a Bilateral Trade Agreement with the US.
China stands out as the primary exception to Trump's sudden policy shift. He has increased tariffs on Chinese goods to 125 percent in response to China's retaliatory 84 percent levy on American goods.
Trump announced the adjusted tariffs in a post on Truth Social on Wednesday midday as the markets faced turmoil for another day due to the tariffs, which led to a sell-off in treasury bonds. Stock indexes surged shortly thereafter, with the tech-heavy Nasdaq reaching a two-decade peak.
When asked about the reasons behind his abrupt change, Trump told reporters, "I thought that people were jumping a little bit out of line."
"They were getting yippie, you know, they were getting a little bit a little bit afraid," he explained.
"You have to be flexible," he added when further questioned.
While Trump had previously signaled his willingness to negotiate when he introduced the "reciprocal" tariffs, his senior aides insisted that the tariffs were non-negotiable. However, the President moved towards negotiation and indicated that he made this decision on Wednesday morning.
"Given the lack of respect that China has demonstrated towards the World’s Markets, I am hereby raising the Tariff imposed on China by the United States of America to 125 percent, effective immediately," President Trump stated on Truth Social.
"Conversely, and based on the fact that more than 75 Countries have contacted representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate regarding Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non-Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated against the United States in any form, I have authorized a 90-day PAUSE, and a significantly reduced Reciprocal Tariff during this period, of 10 percent, also effective immediately," he added.
The US markets have been in upheaval since the reciprocal tariffs were enacted, and there have been calls from several influential Wall Street figures, like Bill Ackman, advocating for a 90-day pause. Trump has also received criticism regarding the tariffs from one of his key advisors, Elon Musk, who publicly clashed with Peter Navarro, a prominent trade advisor to the President.
Trump's focus was on stabilizing the tumultuous market.
"Be cool! Everything is going to work out well," he posted on Truth Social shortly after the markets opened. "The USA will be bigger and better than ever before."
Shortly thereafter, he posted an alert for investors (in all caps): "This is a great time to buy."
