Trump Announces Pause on Tariff Plan, Catching Lawmakers Off Guard and Sending Stock Markets Skyrocketing

Officials on Wednesday were caught off guard by President Trump’s announcement that he would pause retaliatory tariffs on all countries except China, even as they were meeting with the deputy treasury secretary. Major market indices shot up following the president’s Truth Social post. Secretary Bessent was due to speak to members of the Republican Study Committee — the largest bloc of House conservatives — on Wednesday at their weekly lunch, though he canceled and sent his deputy, Michael Faulkender instead. One lawmaker in the room told the Sun that Mr. Bessent had been summoned to the White House. Shortly after the proclamation was made on Truth Social, several lawmakers emerged from the lunch and expressed surprise, and some relief, at the president’s announcement. Mr. Faulkender did not make any mention of a tariff pause during the meeting, lawmakers said, meaning that the decision was likely made by Messrs. Trump and Bessent abruptly Wednesday afternoon. A former House member and the current governor of North Dakota, Kelly Armstrong, who was also in the RSC meeting, flashed a wide grin when the Sun informed him of the announcement. “Huh? What pause?” Mr. Armstrong said when asked about the breaking news. He went on to say he was glad Mr. Trump was keeping the pressure up on China with his new 125 percent import tax. The president’s trade representative, Jamieson Greer, was seemingly in the dark about the whole situation. Mr. Trump sent his post while Mr. Greer was testifying before a congressional committee. When asked about the pause, Mr. Greer had little insight. “What are the details of the pause?” Congressman Steven Horsford asked Mr. Greer shortly after it was announced. “We’re going to have about 90 days,” Mr. Greer said, without being able to offer any additional specifics about reduced import tax rates and the tariff hike for China. “So the trade representative hasn’t spoken to the president of the United States about a global reordering of trade?” Mr. Horsford added, his voice rising. “It looks like your boss just pulled the rug out from under you!” Mr. Trump told members of the press corps on Wednesday that he made the decision to lower the tariffs for the next 90 days because of the stock and bond markets. He claimed people were “afraid” of his policies, which drove trillions of dollars worth of losses in the last week. “I saw last night where people were getting a little queasy,” Mr. Trump said, referring to the increased ten and 30-year treasury yields which rose substantially last night. “[Investors] were getting yippy, a little bit afraid.”The president says tariffs will be lowered on all nations which did not retaliate against his original import taxes imposed just seven days ago. Reporters had to explain to Congressman Dusty Johnson of South Dakota the exact nature of the pause just as he emerged from the lunch. “So whatever was originally announced it’s now going down to 10 percent for 90 days?” he asked. He then praised the White House “has done a really good job in the last few days of making it clear to America that they’re taking negotiations seriously,” Mr. Johnson added. “They’re having conversations with some of these key trading partners.”The South Dakota congressman added that he still supports using tariffs as a negotiating tool. Congressman Rich McCormick called the temporary tariff reduction “cool” after emerging from the lunch. “I was worried, just like everybody else. I have constituents in my district who rely on batteries from Vietnam, cars from Germany. I was very worried about how this was gonna affect their businesses,” he said. “But then everybody came to the table. … 50 countries came to the table.”Congressman Darrell Issa, who left the lunch before the president made his announcement, said the deputy treasury secretary gave lawmakers a brief update on negotiations with countries who are open to lowering trade barriers. “He only said it was ongoing. I expect that we’re going to see some indication out of the president fairly quickly,” Mr. Issa said. Mr. Bessent was asked at the White House if he could explain the president’s decision-making process. The treasury secretary simply responded, “No.”“President Trump created maximum negotiating leverage for himself,” Mr. Bessent said.

Trump Announces Pause on Tariff Plan, Catching Lawmakers Off Guard and Sending Stock Markets Skyrocketing

More from the New York Sun

UEFA Weighs World Cup Boycott Over Infantino’s $20 Billion Private Equity Push

xAI Argues Minnesota’s Ban on ‘Nudification’ Violates the First Amendment

Trump Asks Supreme Court To Void E. Jean Carroll’s $83 Million Verdict Imposed for ‘Extraordinary and ‘Egregious’ Defamation

Cornyn Cancels Meeting With Blanche as Texas Senator Ramps Up Pressure To Reverse Trump’s IRS Immunity

Sophie Cunningham’s Transgender Stance Sparks Pre-game Rally at Seattle

Russia Charges Telegram Founder With Aiding Terrorism for Allowing Ukrainian Intelligence Accounts

Paul Orders Contempt Vote After Fauci Refuses To Answer Questions at Senate Covid Hearing

Jay Clayton Confirmed as New Director of National Intelligence, Replacing Trump Loyalist Bill Pulte