White House capitulated under bond market pressure, says reporter
- Charles Gasparino pointed out that the White House's decision to pause tariffs was not a tactical victory.
- The bond market's instability, especially Japan's selling of bonds, was a crucial factor influencing this decision.
- The narrative around Trump's negotiation prowess contrasts with the reality that external economic pressures forced this pause.
In the United States, a significant development unfolded recently concerning President Donald Trump's tariff plans. Trump announced a 90-day pause on his tariff strategy, which was initially framed by some Fox News commentators as a successful negotiation tactic. However, Fox Business correspondent Charles Gasparino challenged that narrative, asserting it was actually the White House that capitulated due to external pressures, particularly from the bond market. He noted that this pause came after the administration had previously promised to maintain tariffs while engaging in negotiations with 75 countries. On the same day of the announcement, significant activity in the bond market, especially bond sales by Japan, a major holder of U.S. bonds, indicated a lack of confidence in the U.S. economy. Gasparino explained that this selling was a reaction to concerns over the ability of the Trump administration to negotiate effectively. The adverse market conditions influenced the decision to pause the tariffs, marking a surrender rather than a strategic victory for Trump. Treasury Secretary Scott Bessent and Press Secretary Karoline Leavitt supported Trump’s actions, claiming they would boost the markets, which had been suffering declines. Nevertheless, Gasparino maintained that no concrete deals emerged from the administration's engagements with other nations, meaning the pause could not truly be considered a win for Trump's negotiation strategy. He pointed out that despite Trump's administration's assertions, there were no definitive agreements in place. The contrast between the portrayal of this decision by some media outlets and Gasparino's insights highlights the ongoing debate about Trump's negotiating tactics and the impact of market forces on policy decisions. While certain commentators hailed the 90-day freeze as a clever maneuver by the president, Gasparino's findings suggested it was, in fact, a response to diminishing confidence among foreign allies, especially seen through the actions of Japan in the bond market. Trump himself later acknowledged that the bond market played a role in his decision-making process, noting he observed market reactions that indicated instability within the economy.