The Art of the Retreat - The Atlantic

See original article

Trump's Trade War Retreat

President Trump's abrupt reversal on his global tariff plan, initially touted as a brilliant strategy, was driven by concerns over the bond market's negative reaction. The West Wing was rattled by ominous bond market moves, prompting a change in course.

While Trump's aides and allies attempted to frame the about-face as a masterful negotiation tactic, Trump himself acknowledged that economic realities forced the new approach. He cited anxieties in the bond market and pressure from others, including those within his own administration, as reasons for pausing the tariffs.

Republican Reaction and Pressure

Republican leaders, while publicly supporting Trump, were growing increasingly uneasy with the tariffs. This led to efforts to quell a possible revolt within the party. Several Republicans introduced legislation to regain Congressional control over tariffs, while Speaker Mike Johnson blocked legislation against Trump's trade war.

The Narrative of Victory

Trump and his allies attempted to spin the tariff pause as a victory. They claimed that the mere threat of tariffs had already prompted other countries to seek trade renegotiations and that this was the initial plan all along, despite no actual concessions made.

  • The stock market surge was pointed to as evidence of success, despite the market not fully recovering pre-tariff losses.
  • Trump's administration downplayed the potential negative consequences of his trade war actions on global trust and the disruption of trade between the US and China.

Though some Republican senators urged Trump to shift towards targeting China while negotiating with allies, there wasn't enough support within the party to directly defy the president.

Sign up for a free account and get the following:
  • Save articles and sync them across your devices
  • Get a digest of the latest premium articles in your inbox twice a week, personalized to you (Coming soon).
  • Get access to our AI features