Trump Temporarily Backs Down from Tariff Threat Amid Market Jitters
By Jonathan Chait

While a dip in the stock market or even a potential recession might not shake him, President Trump still appears wary of a financial crisis on the scale of 2008.

Just a day ago, Trump ridiculed Republicans uneasy about his aggressive trade policies, branding them as "Panicans." During a bold speech to the National Republican Congressional Committee, he declared, “This time I’m doing what I want to do with respect to the tariffs,” claiming that he alone had the bravery to oppose the “globalists.”

Yet, despite his tough rhetoric, it seems those globalist forces managed to influence his decision. On Wednesday afternoon, Trump announced a 90-day delay on his proposed “reciprocal tariffs” targeting countries other than China.

Fox News reporter Charlie Gasparino suggested the shift came in response to unsettling activity in the bond market. When questioned by the media, Trump didn’t dispute this, commenting that while the bond market was still “beautiful,” he noticed signs of unease the previous night. The situation had escalated unexpectedly: what began as a modest drop in Treasury bond yields—a typical sign of investors seeking safety—turned into something more concerning as investors began withdrawing funds. Their fears pointed to doubts about the U.S. government's financial stability, raising alarms about possible consequences ranging from higher national debt costs to a full-blown financial meltdown.