“People are becoming Yippy”: Donald Trump’s 90-day pause triggers the emergence of Wall Street
The president’s reversal created a shock wave through Washington. Trump said in a post about truth socialization that the 90-day pause was “written from our hearts.” Wall Street responded with an euphoric rally: The S&P 500 soared 9.5%, and the Dow Jones jumped nearly 3,000 points. But under the celebration is a grim truth – businesses and administration are still shocked by Trump’s whipping policy.
Accidental panic, no plan
While the White House’s retreat constituted a clever strategy to bring countries to the table, Trump acknowledged that the shift was not well-crafted. “It’s just instinct,” he told reporters. “You can hardly get the pencil onto the paper. It’s actually an instinct.”
Finance Minister Scott Bessent insisted that “this has always been his strategy”, suggesting that the move rewards countries that avoid revenge. However, Trump weakened the narrative, saying his decision was “quite early in the morning.” He added that people have been “becoming Yippy” (the scary golf term) and need to be assured.
Despite earlier claims that tariffs are unnegotiable, Trump now said: “You have to be flexible.”
China is still in the crosshair
Although others received temporary relief, China did not. Trump has raised tariffs on Chinese goods to 125%, an escalation of a trade war that has seen tit tit measures. “China is the biggest abuser in history,” Trump said. “They want to reach a deal. They just don’t know what to do.” Beijing quickly fought back. Chinese Foreign Ministry spokesman Lin Jian condemned the US’s “bullying behavior” and said that if a solution is really wanted, the US must show “equality, mutual respect and reciprocity.” This is a few hours after Trump’s latest round of responsibilities went online.
“China is unlikely to change its strategy: gain a foothold, absorb pressure, and let Trump exaggerate his hand,” said Daniel Russel of the Asian Institute of Social Policy. He added: “Other countries will welcome the execution of a 90-day stay (if it continues), but the continuous twists and turns of whipping will create more uncertainty that businesses and governments hate.”
Chaos in the market, calm down in messaging
The government has been working to control the consequences since the tariffs were announced last week. The company suspended investment. The family is retired. Reuters/IPSOS poll found that three quarters of Americans are expected to see prices rise in the coming months.
The tariff plan puts a 10% benchmark tax on almost all imports, and the fines (to 100%) are steeper on countries marked as “the worst offenders” in the White House, including Vietnam, South Africa and the EU. These countries are now facing only 10% of the 90-day baseline.
But not everyone is in trouble. If Canada and Mexico do not comply with USMCA trade rules, then Canada and Mexico will still suffer 25% fentanyl-related tariffs. Automobile imports, as well as all steel and aluminum, also continue to face 25% responsibilities.
Goldman Sachs raised the chances of a U.S. recession to 65%, lowering them to 45% after a pause, but warned that the remaining tariffs could still increase overall interest rates by 15%.
The talks began, but the details were hazy
Then what will happen next? The chair of the negotiations with more than 75 countries is now underway, and he provides very little details. “You might even say [Trump] He claimed China was in a bad position. Talks with Japan and South Korea have begun, and talks are expected to be held from the Vietnamese delegation in Washington.
In the UK, there is no additional tax rate. 10 Welcome a calm tone. “The trade war is not in any interest,” a government spokesman said. Another source pointed out: “Cool and calm can be rewarded.”
However, there is no guarantee. “It’s not over yet,” Trump said. “It’s all going to be great.”
Turbulent modes with real-world costs
Trump’s tariff strategy has become a recurring pattern: the big manifesto, and then abruptly reversed. In just a few days, the world imposed new responsibilities on Trump, defending them, and then retracting most responsibilities while putting pressure on China.
As Dr. Ngozi Okonjo-Iweala, head of the World Trade Organization, warned: “Our assessment is updated with a significant development highlighting the significant risks associated with further escalation.” The WTO forecast shows that the U.S.-China dispute alone can cut commodity transactions by 80%, or about $466 billion.
For now, Trump insists that his approach is working. “We don’t want to hurt countries that don’t want to be hurt,” he said. “They all want to negotiate.”
But as public trust shakes, the market is shaking, and in Fluce’s diplomacy, the U.S. tariff policy now seems to be no longer dependent on strategy, but focuses more on one’s intuition.
(with Reuters input)
