On April 9, 2025, US President Donald Trump announced a 90 -day suspension on customs tariffs for most countries. Behind this apparent reversal, hides much more complex and ignored challenges. But what really motivated this price break?
The real reason behind Donald Trump's price break
In a series of confidential discussions, the American president said that he was fully aware of the potential consequences of his pricing policy, including the risk of breaking the economy in a recession. However, according to sources close to the file, it was not the recession that he feared the most, but economic depression. The president did not wish to repeat the errors of the past, especially those which led to the great depression of the 1930s, which had seen the unemployment rate reaching 25 %.
This context largely explains Donald Trump's decision to return to certain prices imposed within the framework of his trade war. Although he considered a muscular approach, the worsening of financial tensions, symbolized by the fall in stocks and the increase in bond yields, pushed him to react quickly. The inflation of bond market fears has particularly played a crucial role in this policy inversion.
The shadow hero?
In addition, the rise of Scott Bessent, secretary of the treasury, in the development of the commercial strategy and negotiations with the commercial partners have also contributed to this decision. With the approval of the majority of business partners for “favorable” agreements (75 countries), Donald Trump judged that it was necessary to adopt a more measured approach to protect the economy.
In response to the general suspension of prices, the financial markets reacted positively. Bitcoin shares have soared, the S&P 500 jumped 9.5 %, the Dow Jones increased by 7.9 %, and the Nasdaq climbed by 12 %. However, climbing prices on Chinese imports at 125 % has maintained high trade tensions, due to the importance of trade between the two countries.
The real reason behind this 90 -day price break therefore lies in a desire to protect the American economy from a deeper crisis. Donald Trump has chosen to favor a negotiation strategy with several countries including Japan, while keeping the objective of defending American interests.
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