Trump’s Tariff Policy Shift: Short-Term Pain for long-Term Gain?
President Donald Trump admitted on Thursday that his tariff policy changes would cause problems.However, he justified them, saying no one else had tackled these issues. At a Cabinet meeting, Trump defended the new trade strategy, despite the short-term difficulties.”The transition is tough, but the final outcome will be positive,” he stated, as reported by CNBC.
Trump is considering extending the 90-day pause on his “reciprocal” tariffs. If he can’t secure favorable deals with trading partners, tariffs will increase after the pause. When asked about extending the pause, he said, “We’ll have too see what happens,” according to CNBC.
Major U.S. stock indices closed lower today. The S&P 500 fell 3.46%, the Nasdaq dropped 4.31%, and the Dow decreased by 2.50%. Bitcoin (BTC) also lost some of its April 9 gains, trading at $79,800. It was a tough day for investors.
Economic anxiety is rising among U.S. policymakers. Austan Goolsbee, President of the Chicago Federal Reserve Bank, warned about a return to COVID-like economic conditions. he cited a loss of confidence and growing anxiety in the district, which could pose broader risks.
A Wall Street Journal report revealed that Trump had previously accepted the risk of a shallow recession to avoid a deeper depression. However, amid market volatility and rising treasury yields, he reversed some tariffs.This decision, influenced by collapsing bond markets and advice from National Economic Council Director Kevin Hassett, helped the market rebound on April 9. The S&P 500 saw its strongest single-day gain since 2008. Treasury Secretary Scott Bessent reportedly played a key role in coordinating the policy shift.
