Explained: Why Did Trump Do a U-Turn on Tariffs?

US President Donald Trump's surprise decision to pause sweeping global tariff increases — sparing all countries except China — was driven not by long-term strategy, but by mounting pressure and an increasingly uneasy economic outlook. This information is based on multiple reports, which cite numerous officials familiar with the matter.

While Trump's supporters praised the move as a masterstroke, few inside Washington are buying the spin. The truth, according to reports citing insiders, is that the president blinked under growing pressure from CEOs, allies in Congress, financial markets, and even his own advisers.

"People were getting a little queasy" about the bond market, Trump admitted to reporters on Wednesday, explaining why he made the sudden pivot.

What happened inside the Oval

The decision to post the 90-day tariff pause on Truth Social came together early Wednesday morning, after a key Oval Office meeting involving Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. Three sources familiar with the meeting cited in an Axios report said the about-face was driven by three main factors:

Phones ringing off the hook: Bessent and Lutnick told Trump that officials from dozens of countries were urgently reaching out, asking to negotiate. “We’ve got all these great countries. They all want to come and talk. How do we do it?” was the message they reportedly delivered to the president.

Isolating China: With China raising its tariffs on U.S. goods in response to previous American moves, Trump’s team saw an opportunity. The idea: hit China harder, while offering an olive branch to the rest of the world. 

The markets spoke: Despite Trump’s earlier claims that he wasn’t concerned by the falling stock market, continued market volatility — along with rising bond yields and a sliding dollar — became too loud to ignore. Major donors, business leaders, and even friendly world leaders were “practically begging for a pause.”

A market in relief

The financial markets bounced sharply after the announcement. 

Relief wasn’t limited to investors. Both Bessent and Lutnick appeared on television soon after the post went live, praising the president for his negotiating savvy.

What’s next: Trump’s instincts will guide final calls

Despite the pause, the tariff story is far from over. Trump's advisers now face the task of negotiating individual deals with as many as 75 countries — a complex process that could take months.

Trump, meanwhile, made clear that instinct — not spreadsheets — will drive his future decisions.

"Instinctively, more than anything else,” he said when asked how he’ll decide on exemptions. “You almost can't take a pencil to paper. It's really more of an instinct, I think, than anything else.”

For now, the global economy gets a temporary breather — but Trump’s trade playbook, driven more by gut than guidebook, remains anything but predictable.