The White House dismissed rumors of a temporary tariff halt, focusing instead on obtaining fair trade outcomes.
Quick Takes
- A false report claimed a 90-day tariff pause, impacting market fluctuations.
- The White House labeled the report as “fake news”.
- The rumor originated from an unaffiliated social media account.
- Trump remains firm on the tariff strategy to achieve economic goals.
Rumor Origins and White House Response
Rumors of a 90-day pause on tariffs, primarily targeting Chinese goods, recently emerged, causing speculation in financial markets. The White House swiftly refuted these rumors, stating they were “fake news” and reinforcing President Trump’s dedication to a hardline trade policy. The false report stemmed from a social media account, Walter Bloomberg, which falsely claimed affiliation with Bloomberg News.
Major news outlets such as CNBC and Reuters initially picked up the unverified report before issuing corrections. This incident underlined the volatility and risks associated with unverified information, reflecting Wall Street’s nervousness over the tariff impact.
Breaking: The White House pushed back on reports that President Trump is considering a 90-day pause on tariffs. Stock swung wildly, surging into gains before falling back down. https://t.co/rADi2vcRXI
— The Wall Street Journal (@WSJ) April 7, 2025
Market Reactions to Rumor Mill
U.S. markets briefly soared following the false tariff pause reports, but quickly corrected after the White House’s denial. The Dow Jones Industrial Average experienced a roller coaster of fluctuations, erasing a 1,700-point loss, surging over 800 points, and then plummeting again. Kevin Hassett, National Economic Council director, clarified that only President Trump possesses the authority to make such decisions.
“I think the president is going to decide what the president is going to decide,” Hassett said.
Market analysts warned that ongoing tariffs could lead to increased consumer prices, despite White House assurances to the contrary. Trump remained steadfast in his defense of tariffs, asserting their vital role in his long-term economic vision and achieving advantageous trade balances.
JUST IN: Reports of a "90-day tariff pause" are false, according to the White House.
The announcement comes after news started spreading that President Trump was considering a pause on all tariffs, except for China.
"[Karoline Leavitt] tells me it is, 'fake news that the White… pic.twitter.com/mOi5TgtF3y
— Collin Rugg (@CollinRugg) April 7, 2025
Firm Stance on Tariff Strategy
Trump’s administration announced a 10% baseline tariff on most U.S. trade partners, aiming to boost domestic manufacturing and address unfair practices. Billionaires, including Bill Ackman and Richard Branson, criticized Trump’s tariffs, warning of potential economic risks. Elon Musk also voiced opposition, advocating for free trade and cautioning against trade barriers.
“THIS IS AN ECONOMIC REVOLUTION, AND WE WILL WIN. HANG TOUGH, it won’t be easy, but the end result will be historic,” Trump wrote on Truth Social.
The incident underscored the necessity for clear communication in economic strategies, especially given the volatile nature of modern financial markets. Trump’s continuous emphasis on standing firm illustrates a commitment to navigating the complexities inherent in achieving fair trade with global partners.
