Donald Trump, as he has done in the past, backed off his tariff plan. He delayed the "reciprocal" tariffs for 90 days. That caused a rebound in the stock market. The market had a good day and gained back some of what it had lost in the last few days.
This had some wondering if the move was planned by Trump so his family and friends could take advantage of low market prices and make some money. I doubt it.
That would assume Trump understands economics at a professional level. He doesn't. Trump is not a clever villain. He's an obtuse bully.
And like all bullies, he backed down when frightened. He was frightened by the radical drop in the stock market - especially in the bond market (which is more predictive of the economic future).
Any gains made during the one-day surge of the market would have been limited, because the market again plunged downward on Friday - and is likely to continue going down. Investors realized that Trump didn't pause all his new tariffs. Most countries still have a new 10% tariffs, which will raise prices of nearly everything as it gets passed along to U.S. consumers.
The truth is that Trump loves tariffs (and has for decades). He has bragged about them and kind of painted himself into a corner with that. While he can pause them (as he's done several times now), he can do away with them. That would be admitting he was wrong - something his narcissism won't allow him to do.
The economic problems for the country, inflicted unnecessarily by Trump, are not over. Most tariffs will remain, inflation will get worse, job losses will climb, and there's a very good chance of a recession.
Trump is NOT an economic genius - and he refuses to listen to those who are.
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