"His Strategy All Along": US Treasury Secretary On Trump Tariff Pause

US President Donald Trump paused a major part of his tariff plan after sharp declines in the stock and bond markets and growing pressure from business leaders, lawmakers and global allies.

The 90-day pause was announced on Wednesday just hours after the tariffs officially took effect. He shared the update on his social media platform while meeting Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick in the Oval Office.

Markets rose soon after the post.

Bessent said the pause was part of the plan. "This was his strategy all along," he told reporters, as per The Wall Street Journal.

He met Trump on Sunday to discuss it. Wall Street had been calling Bessent all weekend, worried about a possible recession.

Sources close to the White House said Trump's decision came after several key factors: a plunging bond market, mounting criticism from top business leaders like JPMorgan Chase CEO Jamie Dimon, and growing calls from foreign countries seeking trade deals.

Bessent, now seen as holding more sway within Trump's trade team, played a crucial role in persuading the president to pause.

Trump's inner circle said he remained committed to "taking pain" for his larger economic goals but did not want to risk tipping the country into a depression. The tariff pause follows days of lobbying from both Wall Street and Capitol Hill. Executives turned to Republican lawmakers to amplify their concerns, warning that the tariff policy could severely damage the economy.

Trump, who typically keeps advisers guessing, made the final call Wednesday morning.

Bessent, who earlier said it could take months to finalise tariff deals with various nations, said on Wednesday that the US economy would "be back to firing on all cylinders" at a point in the "not too distant future," as per AP.

He also cited a strong diplomatic response to the tariff pause. According to him, there has been an "overwhelming" reaction from "the countries who want to come and sit at the table rather than escalate." Bessent named Japan, South Korea, and India, adding, "I will note that they are all around China. We have Vietnam coming today."

Over 75 countries have reportedly reached out to negotiate, according to Bessent.