Very good article - I have excerpted much of it below the link. As the article says "President Trump finally blinked."
It took a week for the plunge in the stock and bond markets—along with a sustained campaign by executives, lawmakers, lobbyists and foreign leaders—to prompt Trump to roll back for 90 days a major element of his sweeping tariff plan.
The president said the reaction to the tariffs was getting a bit “yippy”—like a nervous athlete unable to perform—and he relied on his instincts to change course as he watched the bond market tank and listened to business leaders including JPMorgan Chase Chief Executive Jamie Dimon express fears of a recession. The episode was classic Trump: He took a drastic action, closely tracked the reaction, kept advisers and allies guessing and then changed course.
In this case, the extraordinary reversal was announced via Trump’s social-media platform just hours after reciprocal tariffs officially went into effect. He tapped out the post in the Oval Office as he sat with Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. Trump also significantly raised tariffs on China.
Shortly after Trump published his post, as markets rose, Bessent stood outside the entrance to the West Wing and explained that the move to pause some of the tariffs was discussed Sunday when the two men met. “He and I had a long talk,” Bessent said before a crowd of reporters. “This was his strategy all along.”
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One key to the change: Trump’s decision to give Bessent more authority within his team of trade advisers, people close to the discussions said, along with the talks on Sunday. Bessent flew down Sunday to Florida and afterward was authorized to make comments publicly about deals, which heartened many people close to Trump who believed the Treasury secretary could find an exit ramp. When the two men returned to Washington together Sunday on Air Force One, Bessent encouraged Trump to focus on negotiations, according to a person familiar with the conversation.
A senior Treasury official said the administration was unified behind Trump’s strategy to promote American economic and national security.
Another factor that made Trump more willing to relent on the tariffs, a person who talked to him said, was that so many countries are in negotiations with the administration.
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Trump played his cards close to his vest. He told advisers that he was willing to take “pain,” a person who spoke to him on Monday said. He privately acknowledged that his trade policy could trigger a recession but said he wanted to be sure it didn’t cause a depression, according to people familiar with the conversations.
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Trump was also in listening mode. Over the past few days, he has been asking friends and advisers about the markets, and he indicated he was closely watching them. At the White House on Wednesday, he had lunch with financier and investor Charles Schwab and met with Michigan Democratic Gov. Gretchen Whitmer, who had warned that Michigan was already feeling the impact of the tariffs throughout its automotive industry—events that came after his decision but signaled he was widely gathering input.
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Wednesday morning with Maria Bartiromo on Fox Business. During the interview, Dimon said a recession was a “likely outcome” of the new tariff program, but also defended the idea of some tariffs as a way to improve trade. He urged the president to give Bessent time to make deals. “I’m taking a calm view, but it could get worse,” Dimon said.
Dimon hasn’t had a substantive conversation with Trump for years, people familiar with the matter said. While his appearance on the Fox Business show had been in place for some time, Dimon knew that Trump and his inner circle often watched Fox and that his message would likely get through to them, one of the people said.
Trump told reporters Wednesday that he had been thinking about pausing tariffs “over the last few days,” adding “it probably came together early this morning, fairly early this morning.” He said he didn’t consult with lawyers for the wording of his announcement and instead relied on input from Bessent and Lutnick. “We wrote it up from our hearts,” Trump said. “We don’t want to hurt countries that don’t need to be hurt, and they all want to negotiate.”
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Bessent and other White House aides cast Trump’s move as part of a negotiating strategy where Trump took a maximalist approach to force the world to the bargaining table.
They noted that China was singled out for increased tariffs because Beijing retaliated against the U.S.
Outsiders who had been alarmed about the tariffs were quick to reinforce the White House’s new message.
“This was brilliantly executed by @realDonaldTrump,” said Bill Ackman, who had been critical of Trump in recent days. “Textbook, Art of the Deal.”
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