As Donald Trump's "retaliatory" tariff hikes took effect shortly after midnight on Wednesday, the US President was closely monitoring the bond market.
As Bloomberg reports in its analysis, yields on long-term US securities were rising, with the 10-year US bond recording its biggest three-day increase since 2001.
The worst-case scenario was beginning to take shape: voters who returned him to the White House to control inflation were faced with high prices. “ People started to get dizzy ,” Trump himself admitted.
Within 14 hours, the President would proceed with one of the biggest economic policy reversals in modern American history. He announced a three-month pause on new tariffs on dozens of countries, with the sole exception of China, for which tariffs were increased to 125%.
The decision came amid uncertainty and turmoil in the stock market. Trump himself watched Fox Business morning coverage, where bankers, traders and businessmen – even his own allies – warned that his policies were pushing the economy into recession. Jamie Dimon, CEO of JPMorgan Chase, caught Trump’s attention by declaring that “ global trade relations are unfair ,” but urged a soft approach and negotiations.
Trump praised Dimon, saying: "Very smart, a financial genius, he did a fantastic job at the bank." But the JPMorgan CEO warned something else: "A recession is the most likely outcome of these policies . "
Billionaire intervention: Musk, Ackman and Graham counterattack
The pressure didn't just come from the market. Elon Musk, Trump's adviser, sharply attacked the tariff strategy and his trade adviser Peter Navarro. Bill Ackman, a prominent hedge fund manager and Trump supporter, proposed a 90-day pause over the weekend to allow room for negotiations.
On the eve of the change, Senator Lindsey Graham called Trump and urged him to "sit down at the table with partners" instead of escalating the crisis.
On Wednesday morning, the picture began to change. Trump urgently summoned his top economic advisers to the White House: Trade Representative Jameson Greer, Treasury Secretary Scott Besant, and Commerce Secretary Howard Latnick. Besant canceled a scheduled appearance at a party committee to return to Washington immediately. Latnick says “ the pressure from outside had increased . ”
Trump was convinced. He made a post on Truth Social with his advisers, without informing his legal team. We wrote it on the spot. " It was heartfelt — and well written, too. "
Unplanned change and promises of flexibility
The announcement surprised many in the Western camp, while the discussion remains open about how exactly the decision will be implemented and which countries – such as Canada or Mexico – will benefit. Trump does not seem concerned.
" You have to show a little flexibility and I can do that ," he commented.
The president left open the possibility of exemptions for specific companies that have been hit by the tariffs. Amid rapid stock market swings and political pressures, he seems content with his choice: " Everything will be fine. America will be bigger and better than ever ," he wrote on his platform.
Behind his seemingly impulsive turn lies a mix of economic realism, political survival, and behind-the-scenes intervention – which echoed the new economic policy of the United States. (A2 Televizion)
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