Trump pauses economic reset to negotiate
The quest for new trade arrangements ought to proceed
President Trump has paused the reciprocal tariffs announced on April 2 for ninety days, due to the financial instability that the announcement provoked. Trump announced on social media that he will use the ninety days to negotiate deals with dozens of countries that have expressed willingness to revise the terms of trade. There are important exceptions to the pause, including China as well as autos, steel, and aluminum. In addition, the ten percent base tariff on nearly all imports remains. The announcement of the pause provoked an immediate recovery of the stock markets.
The financial markets are driven by subjective factors, which no doubt were influenced by the universal condemnation of the reciprocal tariffs by economists affiliated with established institutions and the mainstream media, which are precisely the sectors that are responsible for American deindustrialization and economic decline. Taking into account the financial instability, it makes sense to pause, to go more slowly…