The Trump administration, which was once confident in using tariffs to change global trade, is now starting to pull back. Over the weekend and into Monday, President Donald Trump began to step back from some parts of the tariff war he started, especially those related to car imports. Some people think this is a smart change in strategy, but the pattern of pulling back shows that there are stronger forces pushing on his administration. There are five main reasons for this retreat: a harsh reaction from the markets, clear warnings from major Wall Street firms, the risk of long-term harm to the economy, big drops in public support and ongoing pushback from China. All of these pressures together have caused the White House, which was once very firm, to back down.
1. Market turmoil and investor panic
The financial markets, which often show how people feel about the economy, reacted strongly to Trump’s tariff plans. When the administration pushed ahead with more tariffs—especially on Chinese imports and possible new ones on car parts—markets around the world started to fall. But on Monday, when Trump suggested he might give temporary exemptions on tariffs for vehicles and parts, markets in the US and Europe went up, showing that investors felt relieved. The Dow Jones Industrial Average went up significantly, showing that investors viewed the administration’s softer approach as an important step toward restoring stability.
Content retrieved from: https://www.firstpost.com/world/5-factors-behind-trumps-piecemeal-retreat-from-tariff-war-he-started-13880015.html.
