White House Denies Report of Trump Considering 90-Day Tariff Suspension Amid Market Volatility

A report surfaced on July 7th stating that President Donald Trump was considering a 90-day suspension of tariffs amid significant stock market declines. However, the White House has swiftly labeled this report as ‘fake news.’ Let’s dive into the details.

The Initial Report

Various news outlets, including Reuters and Sputnik, cited CNBC in reporting that Kevin Hassett, then Chairman of the National Economic Council (NEC), had mentioned the possibility of a 90-day tariff suspension for all countries except China. This news initially caused a sharp rebound in the plummeting New York stock market.

The White House Rebuttal

The White House Rapid Response team quickly took to X (formerly Twitter) to refute the claims. They shared a video clip of Kevin Hassett on Fox News, where he responded to a question about a ’90-day pause’ by stating, ‘The president is going to decide what the president is going to decide.’ The Rapid Response team emphasized that Trump had been clear about the need for changes, particularly with China.

CNBC also reported that White House spokesperson Caroline Levitt labeled the 90-day suspension consideration as ‘fake news.’ This denial led to the market reversing its gains and trending downward again, illustrating the sensitivity of the market to trade-related news.

Trump’s Mutual Tariff Announcement

Prior to this, on July 4th, President Trump announced mutual tariffs, imposing a base tariff rate of 10% on all countries. This base tariff went into effect on July 5th. Additionally, individual mutual tariff measures targeting countries the U.S. considered ‘worst offenders,’ including South Korea (with a 25% tariff), were set to begin on July 9th. It’s worth noting that ‘worst offenders’ is a term the US used to describe countries that they believed were engaged in unfair trade practices.

Market Reaction

The market’s reaction to these developments was volatile. The initial report of a potential tariff suspension led to a surge, while the subsequent denial from the White House caused the market to decline once more. This underscores the significant impact that trade policy and related announcements have on market stability.

In Summary

The conflicting reports and rapid denials highlight the complexities and sensitivities surrounding trade policies and their impact on the financial markets. Investors and analysts continue to monitor these developments closely for further insights.