Why Trump Temporarily Suspended His Tariffs ?

Trump Temporarily Suspended His Tariffs

 Catastrophic" is the key word behind Trump's temporary suspension of tariffs.

With the "dire" repercussions of his economic strategy accelerating, US President Donald Trump has reversed his comprehensive tariff plan, announcing a three-month pause.

In a report published by CNN, it stated that after a week of Trump's erratic leadership in the tariff war, America and the world have learned the most terrifying lesson of Donald Trump's second term. The report added: "This time, it was a self-inflicted economic collapse; next time, it could be a national security crisis."

As usual, Trump atoned for his recklessness with another escalatory move: raising tariffs on China to 125 percent. While a wave of relief sent stock markets soaring after days of losses, the confrontation between the world's two largest economies could tip the United States into recession.

There are several ways to interpret Wednesday's events, which were marked by chaos and contradictions from the White House, which described the president's reversal as "genius leadership." Trump reversed his decision, according to CNN, knowing that continuing on his path could lead to disaster.

The truth may lie in the bond market.

US Treasuries are often considered the safest investments in the world, given their security by the world's largest economy. However, the wave of selloffs in US government bonds over the past 48 hours has raised concerns about the impact of Trump's tariffs.

Investors had been promoting the idea that the United States, long the backbone of the global economy, was a source of safety, but their confidence was eroded by Trump's erratic style, which transformed the US from a bastion of global stability to a bastion of instability.

CNN quoted three sources familiar with the matter as confirming that the distress in the bond market was a major factor in Trump's decision to halt the tit-for-tat tariffs.

Treasury Secretary Scott Besant raised these concerns directly with Trump on Wednesday in a meeting prior to the announcement of the halt, confirming concerns expressed by White House economic officials who briefed Trump on the accelerated selloff in the US Treasury market earlier Wednesday.

On Wednesday evening, Trump decided to reduce the new tariff rates on imports from most US trading partners to 10 percent for 90 days to allow for trade negotiations with those countries. The president also said in a social media post that he would raise tariffs on imports from China to 125 percent "due to the disrespect China has shown to global markets," as he put it.