WASHINGTON (AP) 鈥� The stock market was soaring and the sun was shining when President stepped out of the Oval Office on Wednesday afternoon. Less than two hours earlier, from his plans to increase tariffs on many U.S. trading partners, and after bracing for a global economic meltdown.
鈥淵ou鈥檝e got the markets seeing your brilliance,鈥� Sen. John Barrasso, a Republican from Wyoming, told the president.
Trump agreed. 鈥淣obody鈥檚 ever heard of it,鈥� he declared.
It was a typical bit of hyperbole that, in this case, was true. Even by the standards of Trump鈥檚 second term, the saga that had played out over the past week left the world struggling to catch its breath.
The president, of his own doing, had single-handedly pushed the global economy with new tariffs. The stock market cratered, businesses tore up their plans and foreign leaders prepared for a future without the world's richest nation at the center of international trade.
And then Trump backed down. Seven days after announcing what would have amounted to America鈥檚 largest tax hike since World War II in an elaborate Rose Garden ceremony, he rolled back most of the tariffs in a surprise post on his social media website.
"I think the word would be flexible," he said later despite days of insisting that he wouldn't bend. 鈥淵ou have to be flexible.鈥�
Uncertainty lingers as trade talks continue
It was unclear what the president had accomplished, beyond the satisfaction of, in his words, having other countries 鈥渒issing my ass鈥� to try to talk him out of the tariffs. No new trade deals have been reached, although administration officials said negotiations are underway.
However, real damage has been done. The back-and-forth over tariffs shook confidence in U.S. leadership, exposed fractures within Trump鈥檚 team and rattled companies that rely on global sources for products and international customers for sales. Americans who use the stock market to save for retirement and college suffered days of angst.
The turmoil isn鈥檛 over yet, either. Trump's 10% blanket tariffs initially imposed on Saturday are now applied to dozens of nations. He also jacked up tariffs to 125% on imports from China, leaving the world between the first and second largest economies. There are 25% tariffs on Canada and Mexico, America鈥檚 largest trading partners, as well as 25% taxes on imported autos, steel and aluminum.
Other tariffs 鈥� including 24% on Japan, 25% on South Korea, 20% on the European Union 鈥� are on hold for 90 days to allow for trade talks.
鈥淭his just accentuates the policy uncertainty and sense of unreliability Trump is creating,鈥欌�� said William Reinsch, a former U.S. trade official now at the Center for Strategic and International Studies. While Reinsch said it鈥檚 good news that Trump didn鈥檛 move forward with some of his highest tariffs, 鈥渉ow does anybody know that he won鈥檛 change his mind on Friday or next week?鈥�
Trump makes his announcement on 鈥楲iberation Day鈥�
U.S. flags were draped along the White House colonnade for a red-white-and-blue backdrop when on Wednesday, April 2.
鈥淢y fellow Americans, this is Liberation Day,鈥� he said. The president held up a poster listing the tariffs that he would slap on each country 鈥� 32% for Thailand, 49% for Cambodia, 26% for India, and on and on. People around the world squinted to decipher the numbers that would reset critical economic relationships.
The day after the announcement, Trump jetted to Florida
鈥淭he markets are going to boom, the stock is going to boom, the country is going to boom,鈥� he promised while leaving the White House, the whirring rotors of Marine One sometimes overpowering his voice.
But the market was crashing, posting since the outbreak of the coronavirus pandemic five years earlier. And around the country and the world, the fallout spread over the weekend.
Fulcrum Coffee Roasters in Seattle braced for rising costs for beans from Southeast Asia and espresso machines from Italy. Stellantis, the automaker behind brands like Jeep and Ram, announced it would pause production at plants in Mexico and Canada, leading to temporary layoffs at other facilities in Indiana and Michigan, a reminder of how interconnected vehicle supply chains have become.
The Dutch division of Tata Steel said it would cut 1,600 employees, about a fifth of its workforce. Ireland Prime Minister Michael Martin said 鈥渢here is no way to sugar coat鈥� the situation as business with the U.S. started tapering off.
Trump faces growing pushback from his own party
The markets were still in a panic on Monday when an unverified report circulated that the president was considering a 90-day pause on the tariffs. Stocks briefly soared before investors realized the information was wrong.
鈥淲e鈥檙e not looking at that,鈥� Trump said as hopes for the rumored reprieve vanished.
With fears of a recession growing, returning to the Capitol for the workweek were peppered with questions about the tariffs and what they would do in response.
Sen. Ron Johnson of Wisconsin was asked on Tuesday if he understood Trump鈥檚 strategy, and responded by asking 鈥渄oes anybody?鈥� Some of his state鈥檚 premier companies like Kohl鈥檚 expected higher costs, while its dairy farms expected to struggle to sell milk and cheese. Harley-Davidson was a target of planned reciprocal tariffs by the European Union.
Sen. Thom Tillis of North Carolina was even more blunt that day during a hearing with Trump鈥檚 top trade representative, Jamieson Greer. If the tariff plans don鈥檛 work, he said, 鈥淚鈥檓 just trying to figure out whose throat I need to choke.鈥�
Trump retreats, and aides call it part of the strategy all along
The tariffs on allies like Japan, South Korea and the European Union took effect at 12:01 a.m. on Wednesday, and there were no signs that Trump would back down when the sun came up in Washington.
鈥淏E COOL! Everything is going to work out well,鈥� he posted on Truth Social.
Trump also wrote: 鈥淭HIS IS A GREAT TIME TO BUY!!!鈥� 鈥� advice that turned out The president later said he'd been talking with his aides that morning about pausing the tariffs, an announcement that would send the stock market soaring.
Greer was back on Capitol Hill for another hearing when Trump made his announcement.
Rep. Steven Horsford, a Nevada Democrat, asked if Trump's trade representative knew that the tariffs he had just spent at least two hours defending had been paused.
鈥淚 understand the decision was made a few minutes ago,鈥� Greer said.
Horsford erupted, saying 鈥渢his is amateur hour, and it needs to stop.鈥�
At the White House, press secretary Karoline Leavitt scolded reporters for not understanding the president's plans.
鈥淢any of you in the media clearly missed The Art of the Deal,鈥� she said, referencing Trump鈥檚 book from 1987. 鈥淵ou clearly failed to see what President Trump is doing here.鈥�
But the administration sent mixed messages even as it rolled back the tariffs.
Treasury Secretary Scott Bessent said the decision had nothing to do with the markets.
鈥淭his was driven by the president鈥檚 strategy,鈥� he told reporters outside the West Wing. 鈥淗e and I had a long talk on Sunday, and this was his strategy all along."
Trump himself later contradicted Bessent.
鈥淚 was watching the bond market," he said. 鈥淭hat bond market is very tricky.鈥�
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Reporting was contributed by Scott Bauer in Madison, Wisconsin, Martha Bellisle in Seattle, Stephen Groves in Washington, Jamey Keaten in Geneva, Bharatha Mallawarachi in Sri Lanka, Brian Melley in London, Molly Quell in Amsterdam and Gary Robertson in Raleigh, North Carolina.
Chris Megerian And Seung Min Kim, The Associated Press
