A Trade War on Pause
Sometimes, the Thursday episodes of this show matter more than most, and today’s is one of them. Just this afternoon, Donald Trump hit the brakes on his week-old Liberation Day tariffs. The chaotic mix of targeted, sky-high import duties has been shelved for a 90-day pause, replaced by a simple 10% across-the-board tariff for most countries. Why? Officially, to allow nations time to come to the table and negotiate. Unofficially, it looks like pressure from a jittery bond market — reportedly driven by Japan dumping U.S. bonds — may have forced Trump’s hand.
Markets responded with enthusiasm. The Dow surged nearly 8%, the S&P rose almost 10%, and Nasdaq climbed over 12%. The bounce-back invites a question: Was this a planned piece of economic theater? Set the stage with terrifying tariffs, then roll out a “reasonable” compromise to cheers? Or was this a scramble to avoid unintended consequences?
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