The article details how market reactions are significantly influencing President Trump's economic decisions. Rising bond yields, stock market dips, and a depreciating dollar have prompted Trump to adopt a more conciliatory approach.
The pressure from markets led to a 90-day truce in the trade war with China. The US Treasury Secretary admitted that current tariffs aren't sustainable, and Trump has indicated that they will be substantially reduced, though not eliminated. There are suggestions that the US might lower tariffs on certain Chinese goods to around 50-65%, combining 35% tariffs on non-strategic goods and 100% tariffs on strategically important products.
After initially threatening to remove Federal Reserve Chairman Jerome Powell, Trump retracted his statement due to negative market reactions and worsening economic conditions. The threats towards the Fed's independence caused further damage to the US assets.
The article highlights the significant influence large corporations have had on Trump's economic decisions. Companies like Apple, Walmart, Target, and Home Depot successfully lobbied for changes in trade policies, while small and medium-sized enterprises are left out of the process. The fear of economic crisis similar to 1929 is also influencing Trump's actions.