In a swift rebuttal that sent global markets into further turmoil, the White House on Monday dismissed reports that President Donald Trump was considering a 90-day pause on newly imposed tariffs, labeling such claims as “fake news.” The denial came amid continued market volatility following Trump’s sweeping tariff announcements last week that have wiped out nearly $6 trillion in value from U.S. stocks.
Markets React to Conflicting Reports
Wall Street briefly climbed from its steep losses Monday morning following a CNBC report suggesting Trump might be considering a 90-day pause on tariffs for all countries except China. However, these gains quickly evaporated after White House Press Secretary Karoline Leavitt told CNBC’s Eamon Javers that the headline was “fake news.”
The headline had referenced comments from Kevin Hassett, the director of the National Economic Council. According to CNBC data, at 10:39 a.m., the Dow Jones Industrial Average fell 996.97 points (2.60%) to 37,317.89, the S&P 500 lost 115.21 points (2.27%) to 4,958.87, and the Nasdaq Composite dropped 320.20 points (2.06%) to 15,266.70.
Administration Stands Firm on Tariff Policy
Trump reinforced the White House’s position by sharing a video clip on social media featuring Fox Business host Maria Bartiromo, who stated, “Rates are plummeting, oil prices are plummeting, deregulation is happening.” She emphasized Trump’s resolve, adding, “President Trump is not going to bend.”
A White House social media account further clarified, “Wrong. Not only did Director Hassett not say this (clip below), @POTUS has been clear — ‘it all has to change, but especially with CHINA!!!‘”
Commerce Secretary Howard Lutnick had previously insisted that tariffs would not be postponed and would “stay in place for days and weeks,” signaling the administration’s commitment to its trade policy despite market turbulence.
Trump Escalates Threats Against China
Rather than retreating from his tariff strategy, Trump has intensified his stance, particularly toward China. In a stark warning issued Monday, Trump threatened to impose additional 50% tariffs on Chinese goods if Beijing does not withdraw its 34% retaliatory duties on U.S. exports by April 9.
A White House official confirmed to CNBC’s Megan Cassella that if Trump’s latest threat takes effect, U.S. tariffs on Chinese products would total an unprecedented 104%. This calculation includes the blanket 34% tariffs announced last week, on top of existing 20% duties on Chinese imports, plus the additional 50% tariff now being threatened.
In a post on Truth Social, Trump wrote: “Countries from all over the World are talking to us. Tough but fair parameters are being set.” He noted a conversation with Japanese Prime Minister Shigeru Ishiba, stating, “He is sending a top team to negotiate!” Trump criticized Japan’s trade practices, writing, “They have treated the U.S. very poorly on Trade. They don’t take our cars, but we take MILLIONS of theirs… It all has to change, but especially with CHINA!!!“
Global Market Impact
The tariff announcements have triggered a worldwide market selloff. Asian markets plunged overnight, with stock indexes in Singapore, Australia, Japan, South Korea, and India all suffering significant losses. Japan’s Nikkei 225 dropped 6% in early trade, while the MSCI Asia ex-Japan index lost 6.2%.
European markets also tumbled, with European Commission President Ursula von der Leyen stating that while the EU is willing to negotiate with the U.S. on tariffs, the bloc will prepare to retaliate if necessary. She announced that Europe will establish a new import surveillance task force and look to diversify its trade portfolio, focusing on “the 83% of global trade that is beyond the United States.”
Divided Opinions Among Business Leaders
Business leaders and economists have expressed conflicting views on Trump’s tariff strategy. JPMorgan Chase CEO Jamie Dimon warned in his annual shareholder letter that the tariffs will likely boost prices on both domestic and imported goods, weighing down a U.S. economy that had already been slowing.
“Whatever you think of the legitimate reasons for the newly announced tariffs – and, of course, there are some – or the long-term effect, good or bad, there are likely to be important short-term effects,” Dimon wrote. “We are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products.“
Billionaire Richard Branson issued a stark warning on social media: “The US government can still turn things around, but it must act in the next few hours. This is the moment to own up to a colossal mistake and change course. Otherwise, America will face ruin for years to come.“
Even within Trump’s inner circle, there appears to be some dissent. DOGE chief Elon Musk has publicly advocated for free trade, posting a video of economist Milton Friedman promoting free trade principles and expressing hope that Europe and the U.S. can move “to a zero-tariff situation, effectively creating a free-trade zone.“
Administration Defends Strategy
Despite the market turmoil, Trump’s economic advisers have defended the tariff policy. White House Trade Advisor Peter Navarro dismissed recession concerns as “silly” given expected tax cuts, and claimed the tariffs will “pay for the biggest tax cut in American history.“
Treasury Secretary Scott Bessent claimed more than 50 nations had started negotiations with the U.S. since last Wednesday’s announcement, putting Trump in a position of power. However, neither Bessent nor other officials named these countries or offered details about the talks.
Trump himself has remained defiant, posting on Truth Social: “The United States has a chance to do something that should have been done DECADES AGO. Don’t be Weak! Don’t be Stupid! Don’t be a PANICAN (A new party based on Weak and Stupid people!). Be Strong, Courageous, and Patient, and GREATNESS will be the result!“
Economic Outlook Darkens
The tariff announcements have prompted several investment banks to raise their recession risk forecasts. Goldman Sachs has increased the odds of a U.S. recession to 45% in the next 12 months, up from a previous estimate of 35%, citing a sharp tightening in financial conditions and rising policy uncertainty. J.P. Morgan has put the odds of a U.S. and global recession even higher, at 60%.
As markets continue to react and global trade relations remain in flux, the administration’s firm stance on maintaining and potentially expanding tariffs suggests that economic volatility may continue in the near term, with significant implications for global trade, inflation, and growth prospects.
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