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Trump Tariff Pause: The White House has dismissed reports suggesting that President Donald Trump is considering a 90-day pause on new tariffs. A wire headline that cited Kevin Hassett, Director of the National Economic Council, implied that such a pause was under discussion. However, White House Press Secretary Karoline Leavitt refuted the claim outright.
“Fake news,” Leavitt told CNBC’s Eamon Javers, rejecting the report.
Wrong. Fake News. https://t.co/XOLyli5AOS
— Rapid Response 47 (@RapidResponse47) April 7, 2025
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President Trump also took to social media to reinforce his administration’s stance. He shared a video of Fox Business host Maria Bartiromo, who highlighted economic trends following the tariff announcement.
“Rates are plummeting, oil prices are plummeting, deregulation is happening,” Bartiromo stated in the clip, emphasizing the administration’s economic policies.
She further added, “President Trump is not going to bend.”
Market Volatility Following Tariff Rollout
U.S. stocks faced a third consecutive day of sharp declines as the White House remained resolute despite mounting market pressure. The market initially saw a brief rally at the opening bell, with the Dow Jones Industrial Average briefly turning positive. The uptick was likely fueled by speculation circulating among traders and on social media about a possible tariff pause. However, the White House’s firm rejection of such claims quickly sent stocks tumbling again.
The major stock indices suffered significant losses by the end of the trading session:
- S&P 500 dropped 2.2%, nearing bear market territory with a 19% decline from its February peak.
- Dow Jones Industrial Average fell 940 points (2.5%), extending last week’s historic back-to-back 1,500-point losses.
- Nasdaq Composite declined 2%, deepening its position in a bear market.
Investor Expectations Dashed as Trade Tensions Escalate
The latest round of tariffs, including an initial 10% unilateral tariff imposed by the U.S. on imports, took effect on Saturday. Investors had been optimistic that the Trump administration would either successfully negotiate lower tariff rates over the weekend or at least consider delaying the next set of reciprocal tariffs scheduled for April 9.
However, those hopes were dashed when it became clear that the White House was not relenting. Investor sentiment was further rattled by the seemingly arbitrary nature of the tariff formula, which lacked clear economic justification based on traditional trade policy principles.
Adding to market jitters, China retaliated on Friday by announcing a steep 34% tariff on all U.S. imports, opting for direct action rather than negotiations.
Global Economic Ripple Effect Amid Trump Tariff Rollout
The escalating trade tensions reverberated across global markets and other asset classes:
- Bitcoin dropped below $77,000, reflecting investor unease.
- U.S. crude oil prices fell below $60 per barrel, reaching a multi-year low.
- Hong Kong’s Hang Seng Index plunged 13%, marking its worst decline since 1997.
- Germany’s DAX Index saw a 10% drop during Monday’s trading session.
Also Read: Dow Drops 1,200 Points As Global Markets Plunge Amid Trump’s Trade War
