President Donald Trump admitted Thursday that changes to his tariff policy would be an issue, but he said he pursued them because no one else had any issues.
Speaking at the Cabinet meeting, Trump defended changes in his trade strategy as a necessary revision despite the short-term pain. “The transition is difficult, but the end result is positive,” he said, according to CNBC livestream.
Trump has not ruled out extension of his 90-day suspension with his “mutual” tariffs. At the Cabinet meeting, he said that if it is not possible to secure favorable transactions with US trading partners, tariffs will return to higher rates after suspension.
According to CNBC, when asked about extending the suspension, he replied, “We have to see what happens.”
The US major stock market index closed low today, with the S&P 500 falling 3.46%, the NASDAQ falling 4.31% and the Dow falling 2.50%.
Bitcoin (BTC) has given up some of its profits since April 9th and has been trading at $79,800. Overall, it was a challenging day for all investors.
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Covid-like economic situation
This statement came as economic unrest among US monetary policymakers increased. Federal Reserve Bank of Chicago President Austan Ghoolsby has expressed concern about a return to the economic situation seen during the Covid-19 pandemic.
Citing the loss of confidence and growing anxiety within the district, Ghoolsby warned that emotional set-offs could create broader risks for the economy.
The Wall Street Journal report adds more context to Trump’s trade approach and reveals that the former president had previously embraced the risk of a shallow recession to avoid deeper depression.
But amid a sharp rise in market volatility and Treasury yields, Trump overturned several tariff courses.
The decision was influenced by the collapse of the bond market and advice from Kevin Hassett, director of the National Economic Council, spurred market rebound on April 9th.
Treasury Secretary Scott Bescent reportedly played a key role in adjusting policy changes.
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