Following a partial truce in his trade war, Donald Trump admitted that his tariffs would cause "transition problems." This concession comes after market pressure forced him to implement a 90-day ceasefire. Despite the admission, Trump remained optimistic, attributing the situation to past administrations and claiming that the long-term effects will be positive.
The uncertainty surrounding the tariffs continues to negatively affect the US economy. US stock markets experienced significant losses following the announcement. Although inflation decreased in March, potentially offering Trump some relief, the overall economic impact remains uncertain.
Reactions to Trump's actions were mixed. While his cabinet members offered unqualified praise, Janet Yellen, former US Treasury Secretary under Biden, criticized the tariffs as a devastating blow to the US economy.
Trump's partial reversal and the continued uncertainty surrounding the trade war highlight the lack of coherent strategy and the potentially damaging economic effects of his policies.