In a recent statement, the White House has dismissed claims suggesting that President Donald Trump is contemplating a 90-day pause on his extensive reciprocal tariffs. This assertion has been labeled as “fake news” as Trump continues to advocate for these tariffs amid a backdrop of significant selloffs in the U.S. markets.
In a series of posts on Truth Social, Trump expressed that the U.S. has a unique opportunity to address trade issues that should have been tackled “DECADES AGO.” He urged Americans to remain steadfast and not to succumb to feelings of “weakness” or “stupidity,” promising that with patience, “GREATNESS will be the result.”
Trump also pointed to declining oil prices as a success attributed to his tariffs, while simultaneously calling on the Federal Reserve to lower interest rates. In his assertions, he incorrectly claimed that there is “NO INFLATION,” despite economists warning that his tariffs could exacerbate inflation, which continues to surpass the Fed’s 2% target.
Trump's social media posts featured clips from Fox News, where commentators supported his tariff policies. One notable segment included host Maria Bartiromo stating, “Rates are plummeting, oil prices are plummeting, deregulation is happening,” emphasizing that “President Trump is not going to bend.”
Last week, Trump referred to the tariffs as an “OPERATION” designed to bolster the U.S. economy, making it “FAR STRONGER, BIGGER, BETTER AND MORE RESILIENT THAN EVER BEFORE.” While speaking aboard Air Force One, he remarked, “Sometimes you have to take medicine to fix something,” indicating his firm belief in the necessity of these tariffs.
Despite some billionaire supporters of Trump, several have raised concerns regarding the potential economic ramifications of his tariffs. Notably, Bill Ackman, founder of Pershing Square, warned of an impending “self-induced, economic nuclear winter,” expressing frustration over what he perceives as a significant policy misstep that threatens previous economic advancements.
Jamie Dimon, the CEO of JPMorgan Chase, acknowledged the rationale behind tariffs but cautioned that they could lead to increased inflation and heighten the risk of a recession, potentially straining America’s long-term economic alliances.
Hedge fund billionaire Daniel Loeb commented on the recent market downturn, attributing it to the mindset of one individual—Trump—who could “change his mind at any time.” Meanwhile, Richard Branson, founder of Virgin Group, voiced his apprehension on social media, suggesting the U.S. could “face ruin for years to come” unless Trump alters his tariff strategy.
Even Elon Musk, CEO of Tesla and a close ally of Trump, has critiqued the administration’s tariff policies, sharing a video featuring economist Milton Friedman, who championed the benefits of free trade and the advantages of importing goods.
During an event dubbed “Liberation Day,” Trump unveiled a baseline 10% tariff on most U.S. trading partners, asserting that these tariffs would help restore and amplify U.S. manufacturing. This announcement came with limited prior details, as the White House indicated that Trump and his advisers were finalizing the specifics just hours before.
Previously, Trump had suggested a potential 20% universal tariff on all imported goods during his 2024 campaign. Treasury Secretary Scott Bessent stated that the tariffs would target the 15% of countries responsible for the majority of U.S. trade. Market analysts have voiced concerns that these tariffs could lead to price hikes on various products, including coffee, rice, chocolate, and electronics. However, the White House contends that tariffs will not significantly affect consumer prices, referencing former Treasury Secretary Janet Yellen’s assertion that any increases would be negligible.
As the debate over Trump's tariffs continues, it remains to be seen how these policies will impact the U.S. economy in the long run. The interplay between Trump's unwavering support for tariffs and the growing criticism from influential economic figures highlights the complexities of trade policy in today’s volatile market landscape.
