In a significant turn of events, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick played a crucial role in convincing President Donald Trump to pause most tariffs for 90 days.
The move came after rising concerns over the impact of the tariffs on the global market, especially following criticisms from prominent bankers and a slipping stock market.
A Bold Strategy: The Effort to Isolate Trump from Peter Navarro’s Influence
According to reports, Bessent and Lutnick took swift action to sideline rival advisor Peter Navarro, who had been a staunch advocate for the tariffs.
The pair made their move early on April 9, just a week after the controversial “Liberation Day” announcement.
With Navarro occupied in a meeting, Bessent and Lutnick made their way to the Oval Office for an unscheduled meeting with the president, urging him to rethink the tariff strategy.
Behind Closed Doors: How Bessent and Lutnick Got Trump to Reverse Course on Tariffs
Once isolated, Bessent and Lutnick reportedly convinced Trump that a pause in the tariffs was necessary to stabilize the tanking global markets.
Trump then proceeded to announce the 90-day tariff freeze on his Truth Social platform, a decision that reportedly stunned Navarro.
Before Navarro could react, Karoline Leavitt and Bessent quickly briefed reporters, ensuring that the president’s decision would be well-received.
The Reaction: Navarro’s Outrage and the Immediate Press Backlash
Peter Navarro, who had been one of the most vocal advocates for the tariffs, expressed his outrage at the reversal.
He dismissed the report as “mischief” from anonymous sources and denied any role in the decision-making process.
Meanwhile, the White House press team appeared blindsided by the announcement, scrambling to clarify the details of Trump’s new strategy.
The Aftermath: Market Reactions and the Global Impact of Trump’s Pause on Tariffs
Trump’s unexpected announcement had immediate consequences. Global markets, which had been on a downward spiral, surged following the news of the tariff pause.
The S&P 500 saw its sharpest single-day gain since 2008, leading Trump to brag about the success of his decision.
Meanwhile, analysts speculated that the pause was partly driven by concerns over the struggling bond market and its potential effects on the broader economy.
Trump’s Mixed Signals: A 180-Degree Shift in Tariff Strategy
Just days earlier, Trump had firmly stated that there would be no delay in the tariffs.
White House press secretary Karoline Leavitt had reiterated the president’s position, but behind the scenes, key advisors like Bessent and Lutnick were working to change his mind.
Trump’s shift in stance came as a surprise to many, especially within his own administration.
The White House Scramble: How Staff Reacted to Trump’s Tariff Pause Announcement
As news of the tariff pause spread, confusion reigned among White House staff.
Reporters were caught off-guard, learning of the change when they approached press officials for clarification.
Despite the confusion, Bessent stepped up to address the media, claiming that the decision was all Trump’s, and emphasizing the president’s focus on “America First.”
The Markets React: How the Pause Restored Confidence in Global Economies
The 90-day tariff pause gave global markets a much-needed boost, calming fears of an impending recession.
The sudden reversal in tariffs was credited with stabilizing the bond markets and providing relief to businesses and investors alike.
Trump wasted no time in taking credit for the market rebound, touting the “biggest increase in the history of the stock market.”
Bessent and Lutnick’s Strategic Maneuvering to Gain Trump’s Trust
In a last-minute bid to regain control of the situation, Bessent flew to Florida to meet with Trump at Mar-a-Lago.
The urgency of the meeting was palpable, as Trump faced growing pressure from both within and outside the administration.
Despite the controversy surrounding his tariff plan, Trump ultimately sided with Bessent and Lutnick, signaling a shift in his economic policy direction.
A Larger Economic Strategy: The Future of Trump’s Tariff Policies and Trade Negotiations
With the tariff pause in place, Trump now faces the challenge of navigating complex trade negotiations with countries around the world.
The pause is seen as an opportunity to reset relations with key allies and to reassess his “America First” trade agenda.
The president’s team, including Bessent and Lutnick, is now tasked with ensuring that the U.S. remains on track to negotiate favorable trade deals while avoiding further damage to the economy.