Markets returned to growth after the postponement of Trump's tariffs. What the media is writing
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- Markets returned to growth after the postponement of Trump's tariffs. What the media is writing
US President Donald Trump announced the postponement of a significant part of his tariffs for 90 days, while increasing duties on China. Stock markets have gone from falling to rising, but now the White House is being accused of securities manipulation. What the media write about the reversal in the global trade war is in the Izvestia digest.
The New York Times: Trump gave a 90-day delay on duties
On Wednesday, April 9, Trump abruptly reversed course on global tariffs, which roiled markets, disappointed members of his own party and raised fears of a recession. Just hours after he imposed punitive tariffs on nearly 60 countries, the president announced he would suspend them for 90 days. Trump did not extend this pause to China, deciding instead to raise duties on all its imports again, bringing the tax to a whopping 125%.
The New York Times
Trump, who has maintained for several days that he is not worried about the market crash, admitted on Wednesday that the recession influenced his decision. "Things have been looking pretty bleak in the last few days," Trump said. "I thought people were going a little overboard," he said, explaining his decision. They started whimpering. They started to get a little scared."
Trump's course change came amid a sharp sell-off in the U.S. government bond and dollar markets, which are usually considered the safest corner for investors in times of turmoil. Investors large and small watched as trillions in the stock market disappeared over the course of several days, and economists increasingly sounded the alarm that the United States could be heading for recession.
NBC News: How Trump changed his mind about tariffs
Trump's announcement followed a harrowing week during which Republican lawmakers and confidants privately warned him that tariffs could destroy the economy. His own aides quietly raised the alarm about financial markets before he suspended the tariff regime he had unveiled just a week ago.
NBC News
Before Trump's announcement, some of his advisers were close to panicking about bond markets. Interest rates on 10-year Treasuries were rising, contrary to what usually happens when stock prices fall and investors seek safety in Treasury bonds. The unusual dynamics meant that tariffs could push up prices, with people paying more to buy homes or pay off credit card debt due to higher interest rates. Companies looking to expand will pay more for new loans.
Two of Trump's most senior advisers, Treasury Secretary Scott Bessant and Commerce Secretary Howard Lutnick, came out as one, calling for the suspension of duties in connection with the situation on the bond market. The week-long drama highlighted the dangers of a political decision-making process that often depends on the wishes of only one Trump. With increasing pressure from Republicans on Capitol Hill, Trump began to doubt, as in his first term he often viewed the ups and downs of the stock market as a kind of report card for his presidency.
Reuters: markets rebounded after postponement of duties
US stock indexes rose on the back of Trump's announcement on the postponement of tariffs. The benchmark S&P 500 index closed on April 9 with an increase of 9.5%. Relief continued in Asian trading the next day with Japan's Nikkei index rising 9%. European futures also showed strong gains, but there are already signs that the rally may be short-lived. At the same time, oil prices fell, increasing losses caused by fears that trade tensions could push the global economy into recession.
Reuters
Since returning to the White House in January, Trump has repeatedly threatened trading partners with a range of punitive measures, but canceled some of them at the last minute. This repetitive approach has confused world leaders and scared company executives. US Treasury Secretary Scott Bessent said that Trump's 90-day freeze on "reciprocal tariffs" was originally a plan to bring countries to the negotiating table.
Trump also said that it is possible to conclude a trade agreement with China. But his officials have said they will prioritize negotiations with other countries as Vietnam, Japan, South Korea and others line up to try to strike a deal.
CNN: China refuses to back down in trade war
What was supposed to be an era-defining trade war has now narrowed down to Trump's sole target: China. In a week, tariffs on Chinese imports jumped from 54% to 125%. Beijing responded in kind by increasing additional retaliatory duties on all U.S. imports to 84%. This confrontation creates a historical gap that will not only hurt both of these closely intertwined economies, but also increase the degree of their geopolitical rivalry.
CNN
Although China has long stated that it wants to talk, Trump's rapid escalation seems to have convinced Beijing that the United States does not want this. And, according to Chinese President Xi Jinping's calculations, China is ready not only to fight back, but also to use Trump's trade turmoil to strengthen its position, analysts say.
Beijing may make extraordinary efforts to boost domestic consumption, which has been weak, and introduce other policy measures to support its economy. Despite the uncertainty about how serious further measures might be, Beijing seems calm. In recent weeks, China has been negotiating with countries in Europe and Southeast Asia, seeking to expand trade cooperation and surpass the United States by luring over American allies and partners irritated by the ongoing trade war.
The Washington Post: Trump is suspected of market manipulation
Less than four hours before Trump announced the suspension of tariffs, which caused the markets to surge, he posted a message to his 9.4 million subscribers online that it was time to buy stocks. Now the Democrats are accusing the US president of market manipulation. The White House has issued a rebuttal to this idea.
The Washington Post
Congressman Stephen Horsford (Democrat from Nevada) said that Trump's post on Wednesday raised suspicions that members of the administration might trade information about tariffs before it was disclosed to the public. "I am concerned that the administration may use trade policy to provide insider information to individuals ahead of upcoming actions or omissions," he said. "If this has happened, it is market manipulation."
Horsford said he was calling for a full investigation into who could have benefited from this information, but acknowledged that conducting such an investigation would be difficult since the US administration had fired the inspectors general who normally carry out such oversight. It's unclear who the Securities and Exchange Commission will be suing, because no one knows who could benefit from Trump's post. Officials and major shareholders of companies are required to disclose their transactions, but individuals who could benefit from the Trump post, as a rule, should not do so.
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