How Trump changed his mind on tariffs

Published

2 months ago

April 10, 2025

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“Liberation Day” just gave way to Capitulation Day.

US President Donald Trump pulled back on Wednesday on a series of harsh tariffs targeting friends and foes alike in an audacious bid to remake the global economic order.

Mr Trump’s early afternoon announcement followed a harrowing week in which Republican lawmakers and confidants privately warned him that the tariffs could wreck the economy.

His own aides had quietly raised alarms about the financial markets before he suspended a tariff regime that he had unveiled with a flourish just one week earlier in a Rose Garden ceremony.

Tariffs latest: Beijing takes fight to Trump

The stock market rose immediately after the about-face, ending days of losses that have forced older Americans who’ve been sinking their savings into 401(k)s to rethink their retirement plans.

Ahead of Mr Trump’s announcement, some of his advisers had been in a near panic about the bond markets, a senior administration official told Sky News’ US partner network NBC News.

Interest rates on 10-year Treasury bonds had been rising, contrary to what normally happens when stock prices fall and investors seek safety in treasuries.

The unusual dynamic meant that at the same time the tariffs could push up prices, people would be paying more to buy homes or pay off credit card debt because of higher interest rates. Businesses looking to expand would pay more for new loans.

Two of Mr Trump’s most senior advisers, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, presented a united front on Wednesday, urging him to suspend the tariffs in light of the bond market, the administration official said.

In a social media post, Mr Trump announced a 90-day pause that he said he’ll use to negotiate deals with dozens of countries that have expressed openness to revising trade terms that he contends exploit American businesses and workers.

One exception is China. Mr Trump upped the tariff on the country’s biggest geopolitical rival to 125%, part of a tit-for-tat escalation in an evolving trade war.

Mr Trump reversed course one week after he appeared in the Rose Garden and unveiled his plan to bring jobs back to the United States. Displaying a chart showing the new, elevated tariffs that countries would face, Mr Trump proclaimed: “My fellow Americans, this is Liberation Day.”

It proved short-lived. Markets plunged in anticipation of heightened trade wars, wiping out trillions of dollars in wealth.

Democrats seized on the issue, looking to undercut a source of Mr Trump’s popular appeal: the view that he can be trusted to steer the nation’s economy.

“Donald Trump’s market crash has vaporised a whopping $104,000 from the average retirement account,” Senate Minority Leader Chuck Schumer, said on Wednesday on the Senate floor, hours before the president’s reversal.

The episode laid bare the rifts within Mr Trump’s team of senior advisers as the White House struggled to offer a clear, consistent argument about the duration of the tariffs.

While Mr Bessent seemed open to negotiations, Peter Navarro, a senior trade adviser, appeared to take a more hard-line posture.

Elon Musk, the billionaire Tesla chief executive who has been advising Mr Trump on the government workforce, called Navarro “dumber than a sack of bricks,” while Mr Navarro described Mr Musk as someone who is merely “a car assembler, in many cases”.

But the weeklong drama also underscored the peril of a policymaking process that is often tied to the wishes and vagaries of one man: Donald Trump.

Asked about the dust-up between Mr Musk and Mr Navarro, Republican Senator Lindsey Graham, a golf partner of Mr Trump’s, said: “I don’t think it matters. The only one who matters is Trump.”

Markets tend to favour predictability, as do business leaders deciding where to build new plants. When Mr Trump sets a course, however, there are bound to be detours.

A friend of his who spoke to him in recent days said Mr Trump gave no sign he was about to “back down quickly on this stuff”.

Mr Trump believes other countries trade unfairly and sees tariffs as a tool to make the United States more competitive, the person said.

“He’s very confident it’s going to work for him,” the person added, speaking on condition of anonymity.

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And yet in the run-up to Wednesday’s announcement, Mr Trump and his aides were also hearing from GOP lawmakers and outside allies urging an alternative path.

One was Larry Kudlow, who hosts a show on Fox Business Network and was a senior economic adviser in Mr Trump’s first term.

Mr Kudlow told NBC News that he has had “ongoing” talks with friends in the West Wing about the need to negotiate with other countries before the United States slaps them with tariffs that stand in perpetuity.

Describing Mr Trump’s move Wednesday as “fabulous,” Mr Kudlow added: “Dealmaking is the best thing to do. In the last 48 hours, Trump has gone from non-negotiating to negotiating.

“It’s very clear that Bessent is now the point man on trade. Very clear.”

Anxious GOP lawmakers also weighed in.

Mr Graham said he spoke to Mr Trump at length on Tuesday night and told him he had been hearing from car manufacturers who are worried about how the tariffs would affect their business. BMW operates a plant in Mr Graham’s home state and is one of the companies he said he had spoken to.

Senator John Kennedy, a Republican lawmaker who was also in touch with the administration, said on Tuesday that he planned to have lunch with Mr Bessent. On Wednesday, he told NBC News he was also talking to the White House.

Mr Kennedy likened Mr Trump to the “pit bull who caught the car”. Now, he said, the question becomes: “What are you going to do with the car?”

After more market losses this week, and with pressure mounting from Republicans on Capitol Hill, Mr Trump began having second thoughts.

In his first term, he often viewed the ups and downs of the stock market as a kind of report card on his presidency, celebrating its rise. The downturn had got his attention.

“People were getting a little queasy,” he acknowledged Wednesday on an event with NASCAR racing champions.

“Over the last few days” he began to more seriously consider pausing the additional tariffs, he told reporters later in the day in an Oval Office appearance.

One prospect that intrigued him was personally negotiating new trade deals with the countries looking to get out from under the tariffs, the senior administration official said.

He’d made up his mind. Sitting with Mr Bessent and Mr Lutnick, he crafted the note announcing the 90-day postponement and ending, for the time being, the biggest economic crisis of his young presidency.

“We wrote it from our hearts, right?” Mr Trump said. “It was written as something that I think was very positive for the world and for us, and we don’t want to hurt countries that don’t need to be hurt, and they all want to negotiate.”

The day closed with the Dow Jones Industrial Average up nearly 8%, erasing some – but not all – of the “post-Liberation Day” losses.

Messy as it all may have seemed, his administration insisted that all is unfolding as planned.

“You have been watching the greatest economic master strategy from an American president in history,” White House deputy chief of staff Stephen Miller posted on Wednesday afternoon.

World

Former UN chief’s labelling of Gaza war as ‘genocide’ marks extraordinary shift

Published

20 hours ago

May 30, 2025

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Former UN chief's labelling of Gaza war as 'genocide' marks extraordinary shift

In a stark and direct intervention, Martin Griffiths, the former UN humanitarian chief, has described the situation in Gaza as genocide.

The statement, made during an interview I conducted with Griffiths on The World, marks one of the most pointed accusations yet from a figure known to be deeply embedded in the world of international politics and diplomacy.

“I think now we’ve got to the point this is unequivocal. Of course it is genocide. Just as it is weaponising aid.

“We don’t need to look behind ourselves to see that’s the case. That should encourage us even more because we, of course, all doubted whether it would come to that level of definition.

“We all doubted whether famine is actually there. I think starvation is killing people. That’s bad enough. We don’t have to worry about famine, which is obviously there lurking in the shadows.

“Also, genocide… of course that’s what has happened. We only need to look at the statements made. Prime Minister Netanyahu has the virtue of being very clear about his objectives.”

His choice of words is extraordinary – not just for its gravity, but because it’s Griffiths who is saying it.

A veteran diplomat with decades of experience navigating complex international crises, Griffiths is known for his calm and thoughtful demeanour – not for inflammatory language.

For him to use the term “genocide” in a television interview signals a significant shift in how some within the international system are now interpreting events on the ground in Gaza – 20 months since Israel launched its war.

The timing is also noteworthy.

Just weeks earlier, Tom Fletcher, another respected former British ambassador and current UN humanitarian chief, came close to using the phrase during a UN Security Council session.

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He said: “What more evidence do you need now? Will you act decisively to prevent genocide and to ensure respect for international humanitarian law? Or will you say instead: ‘we did all we could?'”

Whilst he stopped short, his tone showed a clear change in how leading international figures now view the direction of Israeli military operations in Gaza; staggering civilian deaths, and the statements made by Israeli officials prosecuting this war.

Griffiths’ remarks now go a step further.

It comes as the British government continues to grapple with public anger over the mounting civilian toll – and faces growing scrutiny over its continued arms exports to Israel.

This latest statement by Griffiths doesn’t just reflect humanitarian concern.

As a former ambassador, he knows the weight his words carry.

And with the humanitarian crisis in Gaza worsening, his warning challenges Israel’s allies to ask deeply uncomfortable questions.

Lawyers representing Israel against accusations brought by South Africa to the International Court of Justice last year – accusing its actions in Gaza of amounting to genocide – called the claims “unfounded”, “absurd” and amounting to “libel”.

They went on to say Israel respected international law and had a right to defend itself.

World

More than 40% of Europe slides into drought, including pockets of Greece, southern Italy and Spain

Published

20 hours ago

May 30, 2025

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More than 40% of Europe slides into drought, including pockets of Greece, southern Italy and Spain

Well over a third of Europe, including parts of holiday destinations like Spain, Greece and Italy, are now in drought.

March was Europe’s warmest on record – a trend driven by climate change – and also saw below average rain across large parts of the north and east of the continent.

Now 41.2% of Europe finds itself in some form of drought, according to the latest update from the EU’s European Drought Observatory, which covers 11 to 20 May.

It is most acute in pockets of south-eastern Spain, Cyprus, Greece and Albania, where the strongest “alert” category has been issued, as well as parts of Poland and Ukraine.

But broad stretches of northern and eastern Europe through France, Germany, Poland and Ukraine also drying up, sowing concerns about crop yields.

On Thursday, the UK’s Environment Agency officially declared a drought in North West England after river and reservoir levels were licked away by a dry spring.

Greece tourism is ‘unsustainable’

In Greece, “overtourism” from millions flocking to its beaches adds further pressure to water supplies, said Nikitas Mylopoulos, professor of water resource management at Thessaly University.

“The tourist sector is unsustainable and there is no planning… leading to a tremendous rise in water demand in summer,” he told Sky News.

“The islands have an intense problem of drought and water scarcity.”

Islands like Santorini and Mykonos are now forced to ship in water from Athens or desalination plants to provide for showers and swimming pools. In the past, many residents could make do with local methods like rainwater harvesting.

But agriculture is a far bigger drain on the country’s water, with waste rife and policies lacking, said Prof Mylopoulos.

Wildfire season could be ‘particularly difficult’

This year’s hot and dry conditions are also fuelling the risk of yet another fierce wildfire season in Greece.

Last week civil protection minister Ioannis Kefalogiannis warned of a “particularly difficult” summer.

He said a record 18,000 firefighters have been deployed and the drone fleet almost doubled in a bid to combat fires being fuelled by a hotter climate.

Droughts and their causes are more complicated, but scientists at World Weather Attribution say global warming is exacerbating drought in some parts of the world, including around the Mediterranean.

They found the drought of 2022, which spread across the Northern Hemisphere, was made 20 times more likely by climate change.

The International Hydropower Association said drought and intense rain in Europe are pushing power plants to “operate at the limits of their existing equipment”.

Extreme weather costs the EU about €28.3bn (£23.8bn) in lost crops and livestock per year, according to insurance firm Howden.

Hayley Fowler, professor of climate change impacts at Newcastle University, said: “With global warming, we expect more prolonged and intense droughts and heatwaves punctuated by more intense rainfall, possibly causing flash floods.

“In recent years, we have experienced more of these atmospheric blocks, causing record heat and persistent drought, as well as severe flooding in other locations in Europe.

“Recent months have been no different, with prolonged dry conditions and heatwaves in northern Europe and floods in southern Europe.”

World

Nigeria floods: At least 117 dead as heavy flooding submerges thousands of houses

Published

23 hours ago

May 30, 2025

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Nigeria floods: At least 117 dead as heavy flooding submerges thousands of houses

At least 117 people have died and others are still missing after heavy flooding in Nigeria, an emergency official said.

Authorities initially said 21 people had died but this figure has today risen significantly.

Media reports quoting local government officials said a dam collapse has worsened the situation.

Ibrahim Hussaini, head of Niger State Emergency Management Agency, said some 3,000 houses were underwater in two communities.

Videos posted on social media show floodwater sweeping through neighbourhoods, with rooftops barely visible above the brown currents. One clip shows a tanker floating through a town.

The chairman of the Mokwa local government area suggested poor infrastructure has worsened the impact of the flooding.

Jibril Muregi has appealed to the government to start “long overdue” construction of waterways in the area under a climate resilience project.

In a similar occurrence last September, torrential rains and a dam collapse in Nigeria’s northeastern Maiduguri caused severe flooding, leaving at least 30 people dead and displacing millions.

Nigeria is prone to flooding during the rainy season, which began in April – and flooding is becoming more common and extreme as the climate warms.

Hotter air is thirstier and can hold more moisture – about 7% more for every 1C warmer – meaning it unleashes heavier flooding when it rains.

Violent rain, which killed hundreds of people in Nigeria during 2022, was made at least 80 times more likely and 20% more intense by climate change, analysis by World Weather Attribution found.