Zürcher Nachrichten - Art of the deal? How Trump backed down on tariffs

Trump's decision to pause worldwide tariffs capped an extraordinary week of global panic since he announced the levies on what he called "Liberation Day."

After repeatedly denying that he was considering a halt, the first sign that something was up came as markets braced for another brutal session.

"BE COOL!" Trump urged Americans on his Truth Social network at 9:33 am in Washington (1333 GMT) before adding that it was a "GREAT TIME TO BUY!!!"

Few seemed to take the 78-year-old Republican seriously, and turmoil started to spread to usually safe bond markets.

But Trump later admitted that he had made the decision "early this morning" on Wednesday to pause the tariffs.

The author of the "Art of the Deal" is rarely known for his humility, but he appeared to be in a reflective mood as he answered questions about the decision.

"Over the last few days, I've been thinking about it," Trump told reporters in the Oval Office as he signed a series of executive orders -- including one titled "Maintaining Acceptable Water Pressure in Showerheads."

Trump said he then huddled early Wednesday with Scott Bessent, his bespectacled US Treasury Secretary, and Howard Lutnick, the brash Commerce Secretary and former trader.

"It probably came together early this morning," said Trump. "We didn't have access to lawyers. We wrote it up from our hearts, right? It was written from the heart, and I think it was well written too."

What emerged was a lengthy post on his Truth Social network at 1:18 pm local time (1718 GMT) saying that Trump had "authorized a 90 day PAUSE" in tariffs, except on China, which he punished with even higher levies of 125 percent.

Trump's administration insisted it was all part of a grand strategy that had brought 75 countries to the negotiating table in his quest to reduce America's trade deficit.

"Many of you in the media clearly missed the art of the deal," Press Secretary Karoline Leavitt told reporters afterward.

Lutnick posted that he and Bessent "sat with the President while he wrote one of the most extraordinary Truth posts of his Presidency."

- 'Yippy' -

The White House posted a picture of Trump at the Resolute Desk in the Oval Office, flanked by Lutnick and Bessent, with his mobile phone in front of him.

It also posted one of Trump's own posts from 2014, reading: "Deals are my art form. Other people paint beautifully or write poetry. I like making deals, preferably big deals."

As markets made a turbocharged rebound, Trump hosted a group of racing drivers with their brightly-colored cars at the White House.

Trump said the markets had become "a little bit yippy, a little bit afraid -- unlike these champions," as he pointed to the drivers.

"Liberation Week" turned out to be a frantic one in which the White House struggled to get its message straight about whether or not it was prepared to negotiate.

Trump spent the weekend in Florida playing golf, but appeared touchy as he flew back to Washington, saying that "sometimes you have to take medicine to fix something" in reference to the tariffs.

Lutnick, who has become one of Trump's top cheerleaders, repeatedly said there would be no negotiations, as did trade advisor Peter Navarro.

But then Bessent was rolled out on Monday to deliver a softer message that, indeed, negotiations might be possible.

What followed was the remarkable spectacle of Trump's tariff-skeptical aide Elon Musk publicly branding Navarro "dumber than a sack of bricks."

But by Wednesday evening it was over -- for 90 days at least -- and the White House was keen to turn attention towards the stock markets, where the Nasdaq had its biggest single day leap since 2001, while the Dow Jones had its best day since 2020 and the S&P 500 its best since 2008.

Trump, who spent most of the week bashing allies and adversaries alike, struck a magnanimous tone about his announcement.

"It was written as something that I think was very positive for the world and for us," he said.

A.Senn--NZN