US President Donald Trump on Wednesday defended his surprise decision to pause tariffs on most countries for 90 days, attributing the reversal to market reactions and what he described as people getting “a little yippy” and “afraid.”
Speaking to reporters outside the White House during an event with NASCAR champions, Trump acknowledged that turmoil in financial markets, especially the bond market, prompted him to rethink his tariff stance. “I saw last night where people were getting a little queasy,” Trump said, adding, “The bond market right now is beautiful”.
The president said his decision to ease tariffs came together “fairly early this morning,” and that it was written “from our hearts” in a Truth Social post. “We don’t want to hurt countries that don’t want to be hurt, and they all want to negotiate,” he said.
Trump emphasised that while he has backed off tariffs on most nations, duties on China were raised further to 125%. “China was the biggest abuser in history,” he said, claiming Beijing wants a deal but “doesn’t quite know how to go about it.” Trump predicted that “a deal’s going to be made with China. A deal’s going to be made with every one of them,” referring to other US trade partners.
Trump also defended his initial push for sweeping tariffs, saying the trade environment was “not sustainable” and that “somebody had to pull the trigger. I was willing to pull the trigger,” he told reporters.
Asked about how he might determine exemptions for companies hit hard by tariffs, Trump dismissed the idea of applying technical criteria. “Just instinctively,” he said. “You almost can’t take a pencil to paper. It’s really more of an instinct”.
Earlier in the day, Trump’s announcement of a 90-day pause and a reduced 10% reciprocal tariff sent US markets soaring. The S&P 500 recorded one of its biggest one-day gains since World War II, surging 9.5%, while the Dow Jones Industrial Average jumped nearly 3,000 points.
Despite the dramatic turnaround, Trump said the situation remains fluid, “Nothing’s over yet.” Still, he insisted that flexibility is essential in policymaking. “You have to have flexibility,” he said, defending his shift in tone after previously insisting there would be no pause.
