Rumors of a 90-day pause on President Donald Trump’s sweeping tariffs have been firmly dismissed by the White House as “fake news,” despite earlier speculation sending shockwaves through global markets.
White House Press Secretary Karoline Leavitt swiftly refuted a wire headline suggesting a tariff reprieve, telling CNBC, in response to claims citing National Economic Council Director Kevin Hassett.
The market reaction was immediate and unprecedented: the S&P 500 skyrocketed from 4850 to 5250 in under 20 minutes, adding a staggering $2.5 trillion in market capitalization the largest 20-minute gain in its history.
Fox Business host Maria Bartiromo, in a video Trump shared on social media, underscored the administration’s resolve, stating, “President Trump is not going to bend,” as she highlighted falling rates, plunging oil prices, and ongoing deregulation.
Yet, mixed signals from the White House and Trump’s own comments hint at potential negotiations, leaving the world watching.
A Hard Line with Room for Talks?
Trump rolled out widespread tariffs on imports from nearly every country, fulfilling a cornerstone campaign promise to bolster U.S. manufacturing, imposing 10% blanket tariffs on 180 countries.
The move has unleashed economic turbulence, with stock markets plunging and economists warning of rising consumer prices and a looming recession.
On Monday, Trump took to Truth Social, declaring that “tough but fair parameters are being set as countries from all over the world are talking to us.”
This openness to dialogue contrasts with earlier White House rhetoric, raising questions about whether Trump’s tariffs ranging from 10% on the U.K. to 49% on Cambodia might soften through negotiation.
Nations Scramble to Negotiate Tariff Relief
Trump’s aggressive tariff moves have sparked a wave of diplomatic efforts from other countries. The European Union, facing 20% tariffs, saw Commission President Ursula von der Leyen propose a “zero-for-zero” deal on industrial goods, emphasizing Europe’s readiness for a “good deal.”
Cambodia, hit with a 49% tariff, offered to slash its 35% duties on U.S. imports to 5% if talks commence.
The U.K., under 10% tariffs, is optimistic about a swift resolution, with officials negotiating lower U.S. tariffs and tax incentives for American firms.
Vietnam’s Communist Party pledged to eliminate all tariffs on U.S. goods in exchange for a 45-day tariff pause, while India opts for dialogue over retaliation, per Bloomberg.
Taiwan’s President Lai Ching-te aims for “zero tariffs” with the U.S., promising increased investments, and Israel’s Benjamin Netanyahu, set to meet Trump on Monday, preemptively axed its U.S. import tariffs, eyeing relief from a 17% levy. Indonesia, facing 32% tariffs, plans a delegation to Washington, favoring diplomacy over counter-tariffs.
Nigeria did not respond with retaliatory tariffs but rather acknowledged the imposition of a 14% tariff by the U.S. The government stated that this would disrupt the African Growth and Opportunity Act (AGOA), affecting non-oil exports the most.
Surprising Market Swings
The S&P 500’s historic $2.5 trillion surge underscores the market’s sensitivity to tariff news, as Trump’s plan to pause tariffs momentarily pumps markets. Trump’s tariffs even extended to obscure locales like the Heard and McDonald Islands an Australian territory populated mostly by penguins drawing scrutiny.
Triggered by Trump’s reciprocal tariff, Nigeria’s financial markets came under pressure, with the central bank having to intervene, injecting nearly $321 million in three trading days as the Naira fell to an all-time low of N1,600 in the official markets, since the naira was floated in 2023.
What’s Next for Trump’s Tariff Agenda?
As Trump’s tariffs reshape global trade, the stakes are high. The policy has already sparked chaos stock dips, market swings. recession fears, and a $2.5 trillion market swing, while over 50 countries vie for exemptions.
Whether Trump bends, as Bartiromo asserts he won’t, or leverages his “tough but fair” talks for strategic wins, remains unclear.
For now, the White House holds firm against a 90-day pause, dismissing rumors as “fake news,” but the door to negotiation isn’t fully shut. With Netanyahu’s visit and delegations inbound, the coming weeks will test Trump’s resolve and the global economy’s resilience in this high-stakes trade war.
