Donald Trump Opens Up: Here Is The Reason Behind The Tariff Pause

On April 9, 2025, U.S. President Donald Trump announced a 90-day suspension on tariffs for most countries. Behind this apparent turnaround lies much more complex and overlooked issues. But what truly motivated this tariff pause?

The real reason behind Donald Trump’s tariff pause

During a series of confidential discussions, the U.S. President admitted that he was fully aware of the potential consequences of his tariff policy, particularly the risk of plunging the economy into a recession. However, according to sources close to the matter, it was not the recession he feared most, but an economic depression. The President did not want to repeat past mistakes, especially those that led to the Great Depression of the 1930s, which saw unemployment rates reach 25%.

This context largely explains Donald Trump’s decision to roll back some tariffs imposed during his trade war. Although he considered a tough approach, the worsening financial tensions, symbolized by falling stocks and rising bond yields, forced him to react quickly. The inflation of concerns in the bond market particularly played a crucial role in this policy reversal.

The hero in the shadows?

Moreover, the rise of Scott Bessent, Secretary of the Treasury, in shaping trade strategy and negotiations with trade partners also contributed to this decision. With the backing of most trade partners for “favorable” agreements (75 countries), Donald Trump deemed it necessary to adopt a more measured approach to protect the economy.

In response to the general suspension of tariffs, financial markets reacted positively. Bitcoin stocks soared, the S&P 500 jumped by 9.5%, the Dow Jones increased by 7.9%, and the Nasdaq climbed by 12%. However, the escalation of tariffs on Chinese imports to 125% maintained high trade tensions, due to the significance of trade exchanges between the two countries.

The real reason behind this 90-day tariff pause thus lies in a desire to protect the U.S. economy from a deeper crisis. Donald Trump chose to prioritize a strategy of negotiation with several countries including Japan, while keeping the objective of defending American interests.