Economic riots force Trump to change the course to high tariffs – but has the damage done?

While economic and political pressure was becoming unbearable, the US president decided to change the course – but has the damage done, « writes The Guardian.

« My policies will never change, » US President Donald Trump pledged. « Sometimes you have to take medication to heal, » he insisted.

« I know what I’m doing, » the US president boasted. And at 9:33 am Wednesday morning, he said, « Calm down. Everything will go well. »

But less than four hours later, as economic and political pressure became unbearable, the US president announced to social media that he would suspend high trade tariffs for most countries, excluding China.

It was a dramatic decline – from a leader who has spent years cultivating the image of a strong man – able to project indifference through any storm.

The White House assistants reacted immediately – trying to return his « attraction » as a masterful act of the incomparable trader and the brilliant chess player.

However, the damage was done. Damage to America’s position as an honest mediator and reliable ally. Damage to the US dollar and the financial system such as the world anchor of financial stability. And the damage to Trump’s reputation on the issue of tariffs, in the eyes of business leaders, republicans and voters.

« There are clear indications that Donald Trump’s presidency is endangered, » Larry Jacobs from the University of Minnesota said.

« It is clear that it is too early to talk about a failed presidency, but for me there are clear indications that Donald Trump’s presidency is endangered, » said Larry Jacobs, director of the Center for Politics and Governance at the University of Minnesota.

The last two weeks have proven the most volatile period for financial markets since coronavirus pandemic blockages five years ago.

This time, however, the cause is not a contagious virus, but a person’s decisions.

On April 2, staying in the White House roses, Trump announced the comprehensive « reciprocal » fee for dozens, billing it as a « declaration of economic independence » – in a « liberation day » that would restore the « Golden Age » of America.

« After many decades it is our turn to have prosperity, » Trump said.

The fees were calculated on the basis of a country’s trade deficit with the US-divided by the value of goods imported from that country.

The formula was immediately criticized for inaccuracies and absurdities, such as tariff scheduling for the Heard and McDonald Islands, which are entirely inhabited by the penguin.

However, according to Trump, the long -announced tariffs – were a necessary measure to restore US production and to address trade imbalances.

Trump effectively took « hostage » the world economy. The consequences were immediate and widespread, including market instability, strong international punishment, vengeful measures by China, and deep insecurity for businesses and consumers.

Larry Summers, a former Treasure Secretary, described it as « the largest self-esteem of our economy in history ».

Some executive chiefs who had supported Trump in last year’s elections – expressed their regret. Technology giants like Apple experienced a drop in stock prices – analysts predicted a possible price increase for iPhone by 43%.

In the White House, Trump’s closest advisers were shocked. Elon Musk, the richest man in the world, became involved in a public and offensive quarrel with Trump’s trade adviser, Peter Navarro – regarding the influence of tariffs on the manufacturer of « Tesla », calling Navaro a « foolish ».

Trump insisted he was right and that Elite’s opinion was wrong.

As he played with golf at the weekend, though the markets collapsed-Treasury Secretary Scott Bessent-went to Trump’s property at Mar-A-Lago in Florida, to seek a strategy that could involve improving trade agreements with foreign countries.

The increasing pressure from Republicans, business leaders and financial markets sparked the fear of a recession that could also turn into a depression.

Finally, Trump surrendered and, on Wednesday, announced a 90-day pause for most countries, while inviting them to negotiate bilateral trade agreements.

After an initial growth, the markets fell again. While the pause has offered a temporary suspension, the total 10% tariff for almost all US imports – remains in force.

Karoline Leavitt, the White House press secretary, said Friday that more than 75 countries had contacted the Trump administration – with a view to addressing trade issues. // he/ATSH