President Trump's initial hardline stance on tariffs, including a proposed 145 percent levy on Chinese goods, faced significant resistance. Warnings from major retailers like Target and Walmart about potential price hikes and shortages forced a reconsideration of this approach.
The article highlights the complexity of modern global supply chains, contrasting Trump's simplified vision of tariffs forcing companies to relocate production to the US. The actual economic consequences, including a 10 percent drop in the S&P 500 since his inauguration, contributed to this policy shift.
The article portrays Trump's series of backtracks as demonstrating the political and economic costs associated with his initial aggressive trade policy. His backing down on threats to fire the Federal Reserve chairman further underscores the growing pressure he faced.