The article details the 18 hours leading to President Trump's decision to partially reverse his recently imposed high tariffs on foreign goods. Initially, advisors projected confidence in the policy despite negative market reactions. However, conversations with Republican lawmakers and foreign leaders, along with concerns about global market instability and a potential recession, prompted a change in course.
Several key figures played a role in Trump's decision. Republican Senators, including John Neely Kennedy, Lindsey Graham, and Ted Cruz, expressed concerns and urged Trump to negotiate. Swiss President Karin Keller-Sutter also contacted Trump, highlighting the negative economic impact of tariffs on Switzerland. JPMorgan Chase CEO Jamie Dimon's comments on the potential for recession also influenced Trump's thinking.
Trump's decision came after late-night phone calls with senators and a monitoring of bond markets. He described crafting the reversal announcement himself with advisors, emphasizing that it was something discussed for some time. The decision was made early Wednesday morning and announced via social media.
The announcement led to a surge in the stock market. Trump aides initially presented the reversal as a strategic move, while some senior officials were reportedly surprised. The article highlights some confusion about the details of the new policy.
Peter Navarro, a long-time trade advisor advocating for an aggressive tariff policy, did not participate in the decision-making process. He later called the situation a 'beautiful negotiation', suggesting a divergence of views within Trump's administration regarding the tariffs.