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Investing.com -- President Trump recently explained his decision to put a 90-day pause on tariffs, stating that people were becoming nervous and that such a move was necessary for the country's trade situation. According to the President, no other leader would have taken this step, which he considered crucial given the unsustainable nature of the U.S.'s trade relationships, particularly with China.
Trump highlighted that China had made $1 trillion from trade with the U.S. last year, an imbalance he aimed to correct. He claimed that the U.S. has now reversed the situation and is making $2 billion a day. The President emphasized the need for someone to take action, and he stepped up to the task, even though it involved a short-term pause.
The President also noted that many countries, including China, want to strike a deal, but they are unsure of how to go about it. He expressed confidence that these countries would figure it out and that the U.S. is open to making deals with all of them.
Trump added that he implemented a 90-day pause for those who didn't retaliate, warning them that if they did, the tariffs would be doubled. He cited China as an example, as they had retaliated. He expressed optimism about the outcome of these measures, stating that he believes the country will be in a much better position within a year or less.
Regarding the bond market, President Trump described it as "tricky" but currently "beautiful." He acknowledged that some companies had been hit hard by the market fluctuations and said he would consider exemptions for some U.S. companies during the 90-day pause.
In response to a question about credibility given the sudden pause after stating that the tariffs would go into effect, Trump emphasized the need for flexibility in financial markets. He compared the situation to a wall, stating that sometimes one needs to go under, around, or over it, rather than through it.
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