Trump confesses he responded to stock market dip

(MENAFN) President Donald Trump acknowledged that his decision to pause additional tariff increases was partially influenced by a steep decline in U.S. financial markets. Speaking on Wednesday, Trump admitted he was closely monitoring investor reactions, saying people were becoming too "yippy" and fearful, prompting him to announce a 90-day freeze on new tariffs.

Earlier that day, after markets had lost over $1.5 trillion in value amid fears of a 104% tariff on Chinese goods and broader trade measures, Trump attempted to reassure Americans, saying, “this is a great time to buy,” and encouraged calm.

Shortly afterward, he revealed that most tariffs would remain at a baseline 10%, with the exception of China, whose tariff rate was increased to 125%. Trump told reporters he had been watching financial indicators, particularly the bond market, and saw signs of growing investor anxiety.

“I thought people were jumping the gun,” he said. “They were getting a little too nervous.”

The announcement sparked a major stock market rebound. The S&P 500 surged 9.5%, its strongest gain since 2008, while the Dow Jones climbed 7.9%, and the Nasdaq soared 12%—its biggest single-day jump in 24 years. Despite the rebound, markets have not yet recouped the full losses from the previous week’s tariff escalation.

Trump emphasized that his broader trade strategy marked a historic shift, referring to a recent decision as “Liberation Day,” symbolizing a break from what he called unfair trade deals of the past.

When asked about possible tariff exemptions for certain U.S. companies, Trump said such cases would be reviewed individually, based on instinct rather than strict guidelines.

He warned that the trade landscape is still evolving, noting that several countries, including China, are now seeking better terms with the U.S. to avoid bearing the brunt of the tariff increases.

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