Tariff halt decision driven by ‘anger and fear’: Trump

US President Donald Trump

US President Donald Trump said that his decision to unexpectedly suspend the planned tariff hikes came as he closely monitored the "highly complex" situation in the US bond market.

He noted that the move was prompted by prevailing sentiments of anger and fear.

Following his decision to suspend tariff hikes, Trump made a series of remarks to reporters, highlighting his views on the current economic landscape. He began by noting that he had been closely monitoring the bond market, which he described as "highly complex".

Trump observed that people started feeling anxious as early as April 9, and explained that he decided to suspend the tariffs because some parties began to "cross the line," and due to growing sentiments of “anger and fear” among the public.

He emphasized that no other president would have made the same decision, adding that policy decisions should allow for a degree of flexibility.

Referencing JPMorgan CEO Jamie Dimon, Trump said he watched him speak earlier about the possibility of a recession triggered by tariffs, praising Dimon as “smart and brilliant”. According to Trump, Dimon stressed that action needed to be taken.

As for trade, Trump asserted that China is eager to reach a deal but remains unsure how to proceed. Nevertheless, he expressed confidence that an agreement with China — and potentially with others — will be achieved, noting that developments are progressing faster than he initially expected.

He also pointed to signs of economic optimism, mentioning that automakers are shifting production to the US, but criticized Apple’s reliance on manufacturing in China as unsustainable.

Trump highlighted that the bond market is currently performing well and suggested he may consider exempting certain US companies from tariffs.

To conclude, he noted that he relies heavily on instinct in making such decisions, urging observers to look at how markets responded to his announcement.