The Trump administration on Friday announced sanctions relief for Syria as part of a series of steps to end decades of penalties and to stabilize the country.
The Treasury Department said it will grant Syria a 180-day waiver, known as GL 25, to ease financial restrictions that target the country's former rulers in an effort to give its new leaders a chance to rebuild a nation still scarred by more than a decade of civil war.
It will facilitate the provision of electricity, energy, water, and sanitation, and enable a more effective humanitarian response across Syria, Secretary of State Marco Rubio said.
"As President Trump promised, the Treasury Department and the State Department are implementing authorizations to encourage new investment into Syria," said Secretary of the Treasury Scott Bessent. "Syria must also continue to work towards becoming a stable country that is at peace, and today’s actions will hopefully put the country on a path to a bright, prosperous, and stable future."
The waiver will allow Syria to engage in Syrian reconstruction and other economic activity. The sanctions relief has been extended on the condition that Syrian leaders will not offer a safe haven for terrorist organizations and will ensure the security of its religious and ethnic minorities, the Treasury Department said.
"Today’s actions represent the first step in delivering on the President’s vision of a new relationship between Syria and the United States," Rubio said in a statement. "President Trump is providing the Syrian government with the chance to promote peace and stability, both within Syria and in Syria’s relations with its neighbors. The President has made clear his expectation that relief will be followed by prompt action by the Syrian government on important policy priorities."
The move came after Tom Barrack, US Ambassador to Turkey and former advisor to President Donald Trump, announced on Friday that he would be filling the role of U.S. Special Envoy for Syria, while highlighting recent sanctions relief.
"The cessation of sanctions against Syria will preserve the integrity of our primary objective — the enduring defeat of ISIS — and will give the people of Syria a chance for a better future," he wrote Friday on X. "In this way, we, together with regional partners including Turkiye and the Gulf, are enabling the Syrian government to restore peace, security, and the hope of prosperity. In the words of the President, we will work together, and we will succeed together."
Syria's former autocratic leader, Bashar al-Assad, ruled the country for decades after succeeding his father. Assad's government, long sustained by Russia and Iran, presided over 13 years of civil war, and collapsed last year during a major offensive by rebel fighters.
Assad and his family left Syria for Moscow to seek asylum.
The waiver announced on Friday prohibits the new Syrian government from engaging in transactions that benefit Russia, Iran, North Korea or key supporters of the former Assad regime.
The Trump Treasury Department's new sanctions are a "full-frontal assault" on one of the deadliest southern border cartels, a local border official told Fox News Digital.
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two high-ranking Cartel del Noreste (CDN) members, Mexican nationals Miguel Angel de Anda Ledezma and Ricardo Gonzalez Sauceda, Wednesday.
CDN was one of eight cartels and transnational criminal groups labeled "foreign terrorist organizations" by the Department of State Feb. 20.
Under new sanctions announced this week, all property and interest in properties belonging to De Anda and Gonzalez that are in the United States or in the possession or control of U.S. persons are blocked.
While announcing the sanctions, Treasury Secretary Scott Bessent said the department is "working toward the total elimination of cartels to make America safe again" and that the Trump administration "will hold these terrorists accountable for their criminal activities and abhorrent acts of violence."
"CDN and its leaders have carried out a violent campaign of intimidation, kidnapping and terrorism, threatening communities on both sides of our southern border," said Bessent. "We will continue to cut off the cartels’ ability to obtain the drugs, money and guns that enable their violent activities."
Paul Perez, who leads the National Border Patrol Council chapter in the South Texas Rio Grande Valley, told Fox News Digital even though the Trump administration’s border crackdown has dramatically reduced illegal crossings, the cartels, including CDN, continue to present a threat to the lives and safety of American citizens living on the border.
"The threat of cartels is still there," Perez said in an interview with Fox News Digital. He noted that "the thing about the cartels is that they're very sophisticated," explaining they have begun using advanced technology like drones to carry out their operations.
"They're not the street gang-level managers," he said. "They've got a lot of people on their side that have been in this industry for a long time. They know how to get their products moving. They know how to get their product across."
In Mexico, Perez said, the cartels control the border and "act with impunity all along the border," while the Mexican police and military are unable to stop them.
He said cartel gunfights along the border often lead to cartel members fleeing north into the U.S., where "they're going to do everything they can to get away and get back. And if that means harming American citizens, then they're going to do that."
When it comes to CDN, Perez said "they engage in grotesque conduct," such as beheadings and kidnappings and "will harm anybody that gets in their way" regardless of whether they are American or otherwise.
"What I can tell you about the Noreste cartel, they're no different than any other cartels out there, the Sinaloa cartel. They're all deadly cartels. They all traffic in fentanyl. They all traffic in drugs. They are trafficking people," he explained.
By targeting CDN’s leadership, Perez said the Trump administration is effectively weakening the cartel by creating a power vacuum that will cause infighting that will further sap the organization’s strength.
"The cartels are definitely going to feel it," he said. "So, it's a full-frontal assault from the United States.
"That's the protection that we're bringing to the border that we weren't able to bring under President Biden," he added.
"President Trump, on the campaign trail, and since he's been in office, has repeatedly said he's going to do everything he can to protect the United States, to protect its citizens and make sure that there's nobody around that can do harm to our country. And he's doing that. He's taking on the cartels. He's not afraid of them.
"We want to decimate the cartel activity that's going on in the United States. So, he's done what he said he was going to. We support that 100%."
The Trump administration sanctioned two high-ranking members of the Cartel del Noreste Wednesday — one of the most violent drug-trafficking organizations in Mexico and a U.S.-designated foreign terrorist organization, Fox News Digital has learned.
The Treasury Department’s Office of Foreign Assets Control sanctioned the two leaders of the organizations, formerly known as Los Zetas. Officials said the gang exerts "significant influence over the borderregion," especially near the Laredo, Texas point of entry.
The first individual sanctioned was Miguel Angel de Anda Ledzema, a high-ranking member of Cartel del Noreste who oversees the procurement of guns and ammunition for the group. According to the Treasury Department, he has overseen payments to facilitators and straw purchasers in the United States and organized the delivery of firearms to Nuevo Laredo, Mexico — straw purchasers who made false representations to secure firearms from American businesses, who officials say "fell victim to the cartel's lies."
The Treasury Department said that one of the weapons purchased in this arms trafficking conspiracy was recovered after Cartel del Noreste attacked Mexico’s army during a patrol in March 2024.
The second individual sanctioned was Ricardo Gonzalez Sauceda, who was known as the second-in-command of Cartel del Noreste before his February arrest by Mexican authorities.
The Treasury Department said he led an armed enforcement wing of the organization. He had been arrested in connection with attacks on the Mexican military and Mexican police.
At the time of his arrest, he was in possession of a rifle, a handgun, 300 grams of methamphetamine and a package of 1,500 fentanyl pills.
Officials said the new sanctions underscore the Trump administration’s commitment to targeting Cartel del Noreste and other violent cartels involved in drug trafficking, human trafficking, arms trafficking and other heinous crimes endangering the American people.
"In working toward the total elimination of cartels to Make America Safe Again, the Trump Administration will hold these terrorists accountable for their criminal activities and abhorrent acts of violence," Treasury Secretary Scott Bessent said Wednesday. Cartel del Noreste "and its leaders have carried out a violent campaign of intimidation, kidnapping, and terrorism, threatening communities on both sides of our southern border."
Bessent added, "We will continue to cut off the cartels’ ability to obtain the drugs, money, and guns that enable their violent activities."
The new sanctions were imposed in coordination with Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration.
Officials said the action was also closely coordinated with Mexico’s Financial Intelligence Unit.
President of the National Border Patrol Council Paul Perez told Fox News Digital that President Donald Trump’s actions against cartels "fulfills the promise that he made when he stated time and time again that he would not allow the cartels to operate with impunity on our borders or within the interior of the United States."
"These actions deal a significant blow and serves to send the message to all cartels, as well as to those who wish to do harm to Americans, that President Trump will not just talk about it, he will follow through," Perez said. "The amount of drugs, weapons and other contraband, to include the smuggling and trafficking of persons into and throughout the United States, created chaos and terror that the actions of the Trump administration is bringing to an end."
"We fully and without hesitation support the actions taken by President Trump and his administration to take on the cartels," Perez added.
The actions come after Trump directed cartels to be designated as foreign terrorist organizations.
In April, the Justice Department hit a high-ranking member of Tren de Aragua on terrorism and international drug distribution charges — the first time the U.S. government has used terrorism charges to prosecute a member of the violent gang.
"So, if we were to give too much certainty to the other countries, then they would play us in the negotiations," Scott Bessent said of ongoing trade talks.
Andrew Harnik via Getty Images
Scott Bessent has said the uncertainty over tariffs is a trade negotiating tactic.
Bessent said countries could "play us in the negotiations" if the US gives them "too much certainty."
The US and China agreed to reduce their tariffs on each other by 115 percentage points for 90 days.
Treasury Secretary Scott Bessent said on Sunday that President Donald Trump was employing "strategic uncertainty" as a negotiating tactic in his trade talks with other countries.
Bessent was speaking with CNN's Jake Tapper on "State of the Union" when he was asked about the uncertainty Trump's tariffs had brought to small businesses in the US.
"We didn't get here overnight in terms of this terrible trade situation we have with China, but also with the rest of the world. And President Trump is renegotiating these, and strategic uncertainty is a negotiating tactic," Bessent told Tapper.
"So, if we were to give too much certainty to the other countries, then they would play us in the negotiations," Bessent added. "I am confident that, at the ends of these negotiations, both the retailers, the American people, and the American workers will be better off."
Trump announced sweeping tariffs on more than 180 countries on April 2. A baseline rate of 10% went into effect on April 5. A higher set of tariffs, which varied by country, took effect on April 9 before Trump announced a 90-day pause on the same day. The on-and-off-again tariff announcements sparked a massive market sell-off.
That pause, however, didn't apply to China, which saw its tariff rates hit 145% in April.
Last week, Bessent announced that the US has reached an agreement with China to reduce their tariffs for 90 days.
Bessent said the US would slash its tariffs on Chinese goods from 145% to 30% for 90 days. China said it would lower its tariffs from 125% to 10% over the same period.
"We don't want to decouple with China. And President Trump actually wants to open up China for business. So the manufacturing, we want to bring back," Bessent said in his interview on Sunday.
"During COVID, we realized that we had some very strategic shortfalls, whether it was medicines, semiconductors, steel, the other products. So the medium-term goal is to bring back these strategic industries as quickly as possible," Bessent added.
The White House and the Treasury didn't respond to requests for comment from Business Insider.
During an interview on "Meet the Press," Bessent pointed to the higher tariffs imposed on myriad countries after Trump's April "Liberation Day" speech as a consequence of any failed talks.
"I think that it would be the April 2nd level," Bessent replied when asked by host Kristen Welker about the tariff rates some nations may face by the administration.
"Some countries were at 10%, some were substantially higher," he said. "The negotiating leverage that President Trump is talking about here is if you don't want to negotiate, then it will spring back to the April 2nd level."
Bessent also addressed Trump's remarks on Friday, when the president said nations may receive a letter from the administration outlining their effective tariff rate if talks are being held without sincerity.
"This means that they're not negotiating in good faith," Bessent said. "They are going to get a letter saying, 'Here is the rate.' So I expect that everyone would come and negotiate in good faith."
After Trump's "Liberation Day" speech, which sent global markets reeling, the president issued a 90-day pause on the higher "reciprocal" tariff rates that he sought to impose on numerous nations. Instead, most countries have been subject to a baseline 10% tariff rate while they conduct their respective trade discussions with the US.
A notable exception has been China. The US in April raised tariff rates on Chinese goods to a high of 145%. Last week, the US temporarily cut the tariff rate on Chinese goods to 30% as the two countries continue to engage in high-level trade talks. China also lowered its levies on US goods from 125% to 10%.
Earlier in May, the Trump administration announced a trade framework with the UK, with the US rescinding tariffs on British steel and automobiles and US farmers gaining increased market access in the UK.
The president consistently suggests that one effect of his tariffs would be to encourage people to buy fewer things. In the face of price increases and potential shortages, Trump says people can and should make do with less. It's an odd stance coming from any American president, let alone one whose brand is excess. It's also a concept Americans hate. Buying things is our national pastime.
The most striking example of this line of thinking is the president's recent obsession with dolls. "Maybe the children will have two dolls instead of 30 dolls, you know? And maybe the two dolls will cost a couple of bucks more than they would normally," Trump said at a Cabinet meeting in late April. He reiterated the point in a subsequent interview with "Meet the Press" in May. "I don't think that a beautiful baby girl needs — that's 11 years old — needs to have 30 dolls. I think they can have three dolls or four dolls because what we were doing with China was just unbelievable," he said. It's not just dolls that Trump thinks people should cut back on — he's also said kids should have five pencils instead of 250.
Treasury Secretary Scott Bessent brought up the dolls thing as well. In an interview with "The Ingraham Angle" on Fox News, he said he would tell a little girl worried about a Barbie-lite household that "you will have a better life than your parents, that you and your family, thanks to President Trump." She'll have "economic freedom," he added, in exchange for some playtime sacrifice.
The White House has a point in that toys have gotten significantly cheaper in recent decades, leaving many families inundated with them. Many parents would agree that they wouldn't mind accumulating less plastic junk at every birthday, holiday, and trip to Target. At the same time, the doll thing is a little discordant — of all of the items to hold up as the prime example of consumerist excess, a baby doll doesn't immediately spring to mind.
On a broader level, Trump's push for Americans to buy less is a fundamental misread of our culture and economy. Our economy hinges on consumer spending, and cutting back could have serious consequences. On the political side of things, austerity isn't a winning message with the public. In the modern-day American imagination, economic freedom means the freedom to spend our money however we please, mainly on the relatively cheap stuff we can still afford.
"Patriotism and consumerism are about buying, not austerity, generally speaking," says Gary Cross, a US cultural historian at Penn State and the author of several books on consumerism.
As a nation, we've developed a consumer-first identity. What it means to be an American and to have a good American life is intertwined with what and how we spend.
"Consumerism is bound up with that whole definition of living a life of freedom and choice and self-expression," says Jennifer Smith Maguire, a sociologist at Sheffield Business School who studies consumer culture.
Life milestones and rites of passage are measured by our purchases. Coming of age in your teen years means trips to the mall (yes, Gen Z is bringing the mall back). Adulthood is marked by paying for weddings, buying homes, and furnishing a life. Aging means letting go of all the stuff we've accumulated over the course of our lives, which may feel like letting go of pieces of ourselves.
Consumerism is bound up with that whole definition of living a life of freedom and choice and self-expression.
We buy things because we believe our consumption says something about us — we're cool, we care about the environment, we're not yet "old." We're inundated with different kinds of yogurt in the grocery aisle. Whether we're shopping at the store or online, the options for jeans are endless. The extreme freedom of choice can be overwhelming, but it's also what we've become accustomed to.
"Products have a natural connection to help us tell the stories about who we are," says Americus Reed, a marketing professor at Wharton at the University of Pennsylvania. "If I choose A and not B and C, that must reflect something about me as a function of what I know about A, B, and C."
Americans have come to equate consumerism with democracy. We recognize that we can't all be rich, but we can all aspire to something that rich people can buy. Full participation in American society isn't just voting and working, it's buying.
"Everybody can participate in the market, if only to a little tiny fraction," Maguire says. "That little tiny fraction leaves open the possibility that through enough hard work and good luck and the kind of Horatio Alger story, I can get to be more of a participant in the democracy of goods."
Given how the US economy operates, participation from everyone is a good thing. Consumer spending underpins the economy, with personal expenditures accounting for about two-thirds of GDP. Even a small dip could have significant consequences.
"This usually happens on the business side, and it is coordinated — businesses pulling back on investment tends to cause recessions. Because consumer spending is so much larger, you wouldn't need a huge reduction in consumer spending to have a pretty big macro impact," says Michael Madowitz, the principal economist at the Roosevelt Institute, a progressive think tank. "Even if it's just people deciding to wait a few months to buy something, that can have pretty big impacts pretty quickly."
You wouldn't need a huge reduction in consumer spending to have a pretty big macro impact.
Beyond the economic boost, going out and spending is generally seen as part of Americans' patriotic duty. Consumerism is how we fueled the postwar economy and distinguished ourselves from the USSR in the Cold War. After the September 11 attacks, political leaders told Americans not to let what happened "in any way throw off their normal level of activity." During the pandemic, the federal government sent out checks so people could keep spending.
While "spending through the worries" has worked to rally Americans, sacrifice is not usually a popular political message. Former President Jimmy Carter was knocked for years over a 1977 chat where he donned a cardigan sweater and encouraged Americans to turn down the heat over potential natural gas shortages. Carter's predecessor, President Gerald Ford, was met with similar trouble when he encouraged Americans to "whip inflation now" by cutting back spending.
This isn't to say that American consumers haven't sacrificed in moments of war and crisis in the past, but people are usually only willing to do so "based on the idea that we're in an emergency," Penn State's Cross says, "and I'm not sure that people have really bought that." Trump is arguing for emergency austerity as a way to stop other countries from what he considers to be taking advantage of the US, but despite the president's rhetoric on tariffs and trade imbalances, Americans aren't buying that we're in severe crisis mode now. Pollsshow consumers are quite negative on the short-term impact of tariffs, and they're not broadly sold on long-term benefits, either. Heading into Trump's presidency, Americans were excited about the economy. Now, they're alarmed about it, in large part because of his policies. Americans are worried that tariffs are going to hit them where it hurts — their wallets — and the message to just lay off the "buy now" button is not putting them at ease.
People generally do not like being told what to do, including when it comes to their spending. Psychologically, they chafe at the idea that their freedom is being encroached on or they're being pressured. "When you restrict freedom, you'll get counterproductive behavior," Reed says.
On top of a natural aversion to being told no, political polarization makes the reaction even more extreme — many Democrats are going to react negatively to anything a Republican says, and vice versa. Progressives who already don't like Trump aren't going to appreciate him telling them to cool it on spending. There's also something ironic in Donald Trump, the man, telling people to lay off the spending. His entire persona is opulence and overabundance. He, his family, and his allies are making enormous amounts of money with him in the White House. "These guys are getting rich and they're telling you, 'Please buy less dolls for Christmas while all this is settling out,'" Reed says.
Cards on the table: It probably would be good for us to have less stuff. It's not clear if three dolls per child is the right amount, but 30 dolls does seem like a lot. (Though, do kids even play with dolls anymore?) But the president isn't asking for people to be more thoughtful about their materialistic impulses, to rein in pending for the sake of the environment or to discourage exploitative labor practices. He's not advocating for people to put down their gadgets to enjoy experiences and the people around them. Instead, he's asking people to make what seem like arbitrary and unnecessary sacrifices for uncertain promises about a vague vision for a different kind of US economy. And he's doing so at a moment when many people are already feeling stretched on covering basic necessities.
"It's a big difference between me saying, 'I don't need the extra tie for Father's Day this year,' versus people who are like, 'I've been telling you for months that I can't afford eggs. Why are you making everything else more expensive?'" Madowitz says.
A couple of excess pairs of shoes in the closet or tools in the garage are some of the most accessible versions of economic freedom Americans have left.
Trump's mission to make more stuff in the United States may be one that many Americans agree with, but accomplishing it is much more complex than the current undertaking accounts for. As much as consumers say they would pay more for American-made goods, when the rubber hits the road, they usually go for the cheaper option, even if it's produced abroad. Many workers don't want the masculine-coded manufacturing jobs the White House seems so focused on, let alone ones sewing shoes in factories or, as Trump seemingly envisions, making dolls. There's a gendered air to the dolls focus as well — the White House is arguing that people who complain about their policies are worrying about trivial things are for trivial little girls. Consumerism is often coded as feminine, and the world Trump envisions has a masculine, austere bent to it, one where real men only buy the real things they need. A Rolls-Royce gets a tariff exemption. A Barbie does not.
Many Americans don't get to do a lot of choosing these days. Big-ticket items, such as housing, schooling, and healthcare, are prohibitively expensive. Inflation is pushing more and more things out of reach. A couple of excess pairs of shoes in the closet or tools in the garage are some of the most accessible versions of economic freedom Americans have left — and, yes, a bunch of toys, if they so insist.
Emily Stewart is a senior correspondent at Business Insider, writing about business and the economy.
The Trump administration sanctioned nearly two dozen firms operating in Iran’s illicit international oil trade, as President Donald Trump delivered remarks in the Middle East – tempting the Islamic Republic with a "much brighter future" should it come to a nuclear agreement with the United States.
The sanctions, announced by the Treasury Department’s Office of Foreign Assets Control Tuesday, target firms that operate in Iran’s oil trade.
Officials said the Iranian government allocates billions of dollars worth of oil annually to its armed forces to supplement budget allocations, underwriting the development of ballistic missiles and unmanned aerial vehicles, and financing regional terrorist groups.
Treasury Department officials said Iran’s Armed Forces general staff and its main commercial affiliate, Sepehr Energy Jahan Nama Pars Company, continue to establish front companies and rely on buyers and facilitators to enable their sanctioned oil trade.
Sepehr Energy often carries out its oil shipments through a series of "deals" between multiple front companies that it owns or controls, according to the Treasury Department, creating the "illusion of non-sanctionable trade between separate entities."
"Many of the entities involved in Sepehr Energy’s oil shipments are part of an elaborate system of oil smuggling and money laundering, directly controlled by or acting on behalf of Sepehr Energy," the Treasury Department said, adding that it also controls Hong Kong-based front companies and uses them to"broker and receive shipments of Iranian oil delivered to independent so-called teapot refineries in China."
The sanctions came shortly after Trump delivered a speech in Riyadh, Saudia Arabia, urging Iran to take a "new and a better path." The Trump administration is in talks with Iran for a new nuclear deal.
The president, during his speech, though, warned of "massive maximum pressure" if Iran does not come to an agreement.
"As I have shown repeatedly, I am willing to end past conflicts and forge new partnerships for a better and more stable world, even if our differences may be profound," Trump said. "If Iran’s leadership rejects this olive branch... we will have no choice but to inflict massive maximum pressure, drive Iranian oil exports to zero."
"Iran can have a much brighter future, but we will never allow them to threaten America and our allies with terrorism or a nuclear attack," Trump said.
Trump had announced a 60-day time frame to reach an agreement with Iran over its illegal atomic weapons program. The first U.S. negotiating session with Iran commenced April 12.
Trump's special envoy Steve Witkoff met with Iranian officials for a fourth round of nuclear talks over the weekend.
The nuclear talks were "difficult but useful," Iranian Foreign Ministry spokesperson Esmail Baghaei said. A U.S. official, speaking on condition of anonymity to discuss the closed-door negotiations, offered more, describing the talks as being both indirect and direct, The Associated Press reported.
An "agreement was reached to move forward with the talks to continue working through technical elements," the U.S. official said. "We are encouraged by today’s outcome and look forward to our next meeting, which will happen in the near future."
The Trump administration has said the flawed 2015 Obama-era Joint Comprehensive Plan of Action (JCPOA), also known as the Iran nuclear deal, did not prevent Iran from building an atomic bomb.
Before leaving for his trip to the Middle East, Trump reiterated his stance on Iran's nuclear goals.
"You can't have a nuclear weapon, but I think that they are talking intelligently," Trump said. "We're in the midst of talking to them, and they're right now acting very intelligent. We want Iran to be wealthy and wonderful and happy and great, but they can't have… nuclear weapons. Very simple. So I think they understand that."
A day before the start of talks, Iranian Supreme Leader Ali Khamenei welcomed chants of "Death to America" in Iran's capital, Tehran.
"Your judgment is right," Khamenei told a crowd of supporters who called for the destruction of the U.S.
The US and China came to a 90-day tariff truce after representatives of both countries met in Geneva for talks.
Olivia Le Poidevin/REUTERS
The US and China agreed to suspend most tariffs for 90 days to allow for further talks.
Trade experts believe US-China trade will spike during talks, and that the eventual deal will be broad.
Stocks surged on the news, but a Fed governor remains concerned about inflation and economic slowdown.
The US and China agreed to suspend most tariffs on each other's goods for 90 days, following high-stakes negotiations in Geneva over the weekend.
As the tariff pause begins on Wednesday, experts expect a spike in trade between the countries, as companies race to front-load inventory while negotiators work on a deal.
"The negotiations suggest that both countries realize they need each other," Andrew Collier, a senior fellow at the Mossavar-Rahmani Center for Business and Government of the Harvard Kennedy School, told Business Insider.
The temporary truce slashes China's tariffs on the US from 125% to 10% and the US's tariffs on China from 145% to 30%. The deal leaves President Donald Trump's fentanyl-related 20% tariffs in place and does not restore the de minimis exemption, which applied to e-commerce from China and allowed Temu and Shein orders to remain duty-free.
Following the agreement, stocks rallied sharply on Monday, especially for tech. The Nasdaq Composite and the S&P 500 each surged around 3%, while the Dow Jones Industrial Average jumped more than 2.4% and gained over 1,000 points.
A spike in US-China trade
As businesses rush to get shipments across the Pacific while tariffs are lower, Scott Kennedy, senior advisor in Chinese business and economics at the Center for Strategic and International Studies, told Business Insider that he expects US-China trade to speed up during the 90-day negotiation.
"US-China trade should bounce back," said Kennedy. "We may see a substantial jump in cargo for companies that are worried that we will be back at this intersection in a few months, and they need to take advantage of this respite to expand to accelerate trade."
Chinese exports to the US spiked 15.6% in December 2024 compared to the same month in 2023 as businesses frontloaded inventory in anticipation of tariffs once President Donald Trump was inaugurated.
"Our ocean freight bookings from China to US increased 35% in the first day since the trade deal," Flexport CEO Ryan Petersen posted on X on Monday. "A big backlog is looming, soon the ships will be sold out."
However, smaller businesses have previously told BI that they have cash flow constraints when ordering and storing a large volume of products. Increased demand for cargo shipping within a short time frame may also drive up shipping costs.
At the end of the 90 days, trade experts expect the outcome of negotiations to be broad and substantial, but believe there will be some thorny issues that can't be resolved quickly.
Kennedy of CSIS is expecting the US to focus on China's industrial policy, fentanyl, and intellectual property theft, while China would likely try to resolve US export controls, restrictions on investment, and the fees that are scheduled to be imposed on Chinese ships by October.
"With an extremely broad agenda, and the challenge will be narrowing that agenda toward something that looks like potential concessions by both sides," said Kennedy.
Collier told BI that leaders of both countries are under different kinds of pressures to seal the deal.
"How the US will then try to tackle the knotty issue of state subsidies and China's aggressive mercantilism will have to wait for another chapter," he said.
Cautious optimism
While the stock market reacted to the US-China tariff pause with optimism, Federal Reserve Board Governor Adriana Kugler said that overall tariffs at theirnew level are still higher than they have been in recent decades. She said in a speech on Monday that this could still lead to a negative supply shock and a squeeze on real income.
"And the uncertainty associated with these tariffs has already generated effects on the economy through front-loading, sentiment, and expectations," Kugler said.
Kugler expects economic growth to come short of last year's 2.5% expansion, even though recession forecasts are sliding in betting markets as US-China tension cools. Progress made in combatting inflation has also slowed, she said, and inflation is still above the 2% goal.
"Trade policies are evolving and are likely to continue shifting," she added. "Even as recently as this morning."
China has agreed to "open itself up to American business" following trade negotiations between Washington, D.C., and Beijing on Saturday, according to President Donald Trump.
The arrangement was arguably the most significant development stemming from the trade negotiations, Trump told reporters Monday at the White House. Plans have yet to be finalized and "papered," but Trump said that China is on board with the agreement.
"The biggest thing to me is the opening up," Trump told reporters Monday during an announcement regarding an executive order on drug prices in the U.S. "It would be, I think it would be fantastic for our businesses if we could go in and compete and compete with China. It would be a lot of jobs for China."
"I think it's maybe the most important thing to happen, because if you think about it, we opened up our country to China," Trump said. "They come. We don't. I mean, they have very few restrictions. and they didn't open their country to us, never made sense to them. It's not fair. And they've agreed to open China fully open…and I think it's going to be fantastic."
Treasury Secretary Scott Bessent launched trade negotiations with China in Geneva on Saturday, resulting in a deal that would temporarily ease up on tariffs for 90 days.
Specifically, the trade deal stipulates that the U.S. will cut down its tariffs against Chinese imports from 145% to 30%. Likewise, China will reduce its tariffs against U.S. imports from 125% to 10%.
However, tariffs against some Chinese imports will not lighten up, according to Trump. Existing tariffs against cars, steel and aluminum will still remain in place, he said.
Meanwhile, Bessent signaled that more talks with China would occur in the near future and that both Washington and Beijing would like to continue advancing negotiations.
"I would imagine that in the next few weeks, we will be meeting again to get rolling on a more fulsome agreement," Bessent said in an interview Monday morning with CNBC.
Bessent previously warned that the tariffs could cost China up to 10 million jobs, and said that it was up to Beijing whether it would loosen up the tariffs or not.
"I think that over time we will see that the Chinese tariffs are unsustainable for China," Bessent told reporters at the White House on April 29. "I've seen some very large numbers over the past few days that show if these numbers stay on, Chinese could lose 10 million jobs very quickly. And even if there is a drop in the tariffs that they could lose five million jobs."
The deal with China comes days after the U.S. and the U.K. inked a trade deal of their own, which kept existing 10% tariffs in place against U.K. goods but removed some import taxes on items like steel and cars.
"With this deal, the U.K. joins the United States in affirming that reciprocity and fairness is an essential and vital principle of international trade," Trump said Thursday. "The deal includes billions of dollars of increased market access for American exports, especially in agriculture, dramatically increasing access for American beef, ethanol and virtually all of the products produced by our great farmers."
Treasury Secretary Scott Bessent said on Sunday that the Trump administration has made progress in its trade negotiations with China.
"We will be giving details tomorrow. "But I can tell you that the talks were productive," Bessent told members of the media on Sunday from Switzerland. "We had the vice premier, two vice ministers who were integrally involved, Ambassador Jamieson [Greer] and myself. And I spoke to President Trump, as did Ambassador Jamieson last night, and he is fully informed of what is going on."
The Trump administration has leveled tariffs as high as 145% on Chinese goods as the president looks to bring parity to the nation's chronic trade deficit with foreign countries. Trump paused his April 2 reciprocal tariff plan on dozens of nations as countries called on the administration to make trade deals, but he upped the ante on China after Beijing rebuked Trump's trade policies with tariffs of its own, including 125% duty taxes on U.S. goods.
Bessent and U.S. Trade Representative Jamieson Greer met with their Chinese counterparts this weekend in Switzerland to discuss the countries' economic futures, which Trump addressed in a Truth Social post on Saturday evening.
"Many things discussed, much agreed to. A total reset negotiated in a friendly, but constructive, manner. We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!" he posted on Truth Social.
China's Ministry of Commerce said earlier this month that officials were "evaluating" an offer from the Trump administration to hold trade talks on the 145% U.S. tariffs on Chinese goods.
"The U.S. has recently taken the initiative on many occasions to convey information to China through relevant parties, saying it hopes to talk with China," the statement said, according to Reuters.
Trump and the administration have previously said they were willing to hold trade negotiations with China, including the president saying on April 8, "We are waiting for their call. It will happen."
The update on China comes after the Trump administration inked a separate trade deal with the UK last week – the first trade deal signed since Trump's "Liberation Day" announcement on April 2 that leveled tariffs on nations worldwide as the administration looked to end trade barriers on U.S. goods and even the playing field for U.S. exports.
"With this deal, the U.K. joins the United States in affirming that reciprocity and fairness is an essential and vital principle of international trade," Trump said Thursday of the deal. "The deal includes billions of dollars of increased market access for American exports, especially in agriculture, dramatically increasing access for American beef, ethanol and virtually all of the products produced by our great farmers."
The UK deal keeps an existing 10% tariff in place against U.K. goods, while removing some import taxes on items like steel and cars.
A Massachusetts suspect was charged this week with attempting to assassinate a cabinet nominee, the U.S. Department of Justice said.
Ryan Michael English, 24, was arrested in January after allegedly attempting to bring a knife and two improvised Molotov cocktails into the U.S. Capitol to assassinate then-Treasury Secretary nominee Scott Bessent during his nomination.
On Thursday, English was charged with the attempted assassination of a cabinet member nominee and carrying a dangerous weapon on the grounds of the U.S. Capitol Building.
English had an initial court appearance on Thursday afternoon.
Prosecutors said that English had also originally plotted to kill House Speaker Mike Johnson, R-La., and Defense Secretary Pete Hegseth, and was inspired by United HealthCare CEO murder suspect Luigi Mangione.
English walked up to a U.S. Capitol Police officer on Jan. 27 and allegedly stated, "I’d like to turn myself in," according to initial charging documents.
English claimed to have two Molotov cocktails and two knives and expressed being there "to kill Scott Bessent," according to court documents. Federal prosecutors said English left home in Massachusetts and traveled to Washington with the intent of killing Hegseth, whom the suspect referred to as a "Nazi," and Johnson, and burning down the Heritage Foundation, a conservative think tank near the White House.
Capitol Police officers found a folding knife and two improvised incendiary devices made of vodka bottles with a grey cloth affixed to the top inside English's jacket during a search.
Economists and policymakers have warned that the chances of a US recession are rising. Even if it isn't showing up in the hard data just yet — job growth beat expectations in April and inflation cooled in March — consumers, businesses, and markets are showing early signs of pulling back due to uncertainty around the effects of tariffs.
For months, Trump has been urging the Federal Reserve to lower interest rates, arguing the US economy is strong. But since December, the central bank has been in a wait-and-see mode. Following Wednesday's decision to keep interest rates steady, Chair Jerome Powell's main message was that Trump's trade policies were causing too much chaos for the committee to make any moves.
"I think there's a great deal of uncertainty about, for example, where tariff policies are going to settle out," he added. "What will be the implications for the economy, for growth, and for employment? I think it's too early to know that."
Treasury Secretary Scott Bessent has also said the administration is focused on lowering the 10-year Treasury yield — the interest rate on US government bonds — as a gauge of economic health. Yields shot up as the trade war escalated in April, but have since fallen.
If interest rates came down, that would likely spur more business investment and consumer spending by making borrowing money cheaper. However, if higher demand raises prices for energy, food, and other household staples, that risks pushing inflation back up. The Fed is tasked with managing this balance.
The new tariffs — a big escalation from the previous US trade policy — are expected to raise prices in the coming months. Trump slapped 145% tariffs on imports from China, and most other countries face a 10% baseline tariff. Canada and Mexico are exempt. But those two countries did get hit with a 25% tariff on the cars, steel, and aluminum they send to the US. Both China and Canada have retaliated with their own levies on certain US goods.
On Thursday, the US and UK — one of the largest customers of US goods — announced a trade deal that Trump said would expand American exports of beef, ethanol, chemicals, machinery, and other industrial products.
The Fed, businesses, and shoppers sour on tariff flip-flops
In addition to keeping the Fed from delivering the lower interest rates Trump wants, the tariffs may be starting to dampen consumer enthusiasm.
Trump has acknowledged that the tariffs could lead to some constraints on consumers, but that may be the trade-off to pave the way for a longer-term boom due to more balanced trade, Trump said on NBC's "Meet the Press" on May 4.
"I don't think that a beautiful baby girl needs — that's 11 years old — needs to have 30 dolls," Trump said. "I think they can have three dolls or four dolls because what we were doing with China was just unbelievable. We had a trade deficit of hundreds of billions of dollars with China."
There are anecdotal signs that Americans are feeling the impact of Trump's trade policies. The University of Michigan consumer sentiment index has fallen each month this year. Sentiment was better at the start of 2017, when Trump was first in office, despite higher unemployment rates and comparable inflation.
The Trump administration on Thursday targeted Iranian oil with a new slate of sanctions — a move that increases pressure on the Islamic Republic amid talks between U.S. and Iranian officials to make a deal to prevent nuclear proliferation, Fox News Digital has learned.
The Treasury Department’s Office of Foreign Assets Control increased pressure on Iran’s export of oil on Thursday, designating the "teapot" refinery Hebei Xinhai Chemical Group Co., Ltd., and three port terminal operators in Shandong province, China, for their role in purchasing or facilitating the delivery of hundreds of millions of dollars’ worth of Iranian oil.
The "teapot" refineries purchase the majority of Iranian crude oil exports, according to the Treasury Department.
The Treasury Department on Thursday is also imposing sanctions on several companies, vessels and captains they say are responsible for facilitating Iranian oil shipments as part of Iran’s so-called "shadow fleet." The companies and vessels are all China-based.
"As part of President Trump’s broad and aggressive maximum pressure campaign, Treasury today is targeting another teapot refinery that imported Iranian oil," Treasury Secretary Scott Bessent said. "The United States remains resolved to intensify pressure on all elements of Iran’s oil supply chain to prevent the regime from generating revenue to further its destabilizing agenda."
The sanctions come following President Donald Trump’s executive order, which targets Iran’s petroleum and petrochemical sectors — as well as another executive order targeting those that provide support to the National Iranian Oil Company.
Thursday’s sanctions are the latest round targeting Iranian oil sales since the president, in early February, issued a national security memorandum that instituted a campaign of "maximum economic pressure on Iran."
As for Iran’s "shadow fleet," Tehran relies on obscure ship management companies to manage its fleet of tankers that "mask" Iran’s petroleum shipments to China using ship-to-ship transfers with sanctioned vessels.
The Treasury Department on Thursday took action to increase pressure on that "shadow fleet" of actors by designating ships as "blocked property."
Any violation of U.S. sanctions may result in the imposition of civil or criminal penalties on U.S. or foreign persons, the Treasury Department said.
The imposition of sanctions comes as the U.S. and Iran prepare for a fourth round of nuclear talks. U.S. and Iranian officials are set for the next round of talks to take place in Oman in the coming days.
Trump is scheduled to travel to the Middle East, including Saudi Arabia, Qatar and the United Arab Emirates.
Vice President JD Vance recently previewed the next round of talks, saying Wednesday the U.S. was negotiating toward a "complete cessation" of Tehran's nuclear program.
The Trump administration has said the flawed 2015 Obama-era Joint Comprehensive Plan of Action (JCPOA), also known as the Iran nuclear feal, did not prevent Iran from building an atomic bomb, with Vance adding that the agreement had "incredibly weak" enforcement regarding inspections.
Vance said he didn’t believe it "actually served the function of preventing the Iranians from getting on the pathway to nuclear weapons."
Vance also said the Trump administration believes that there were some elements of the Iranian nuclear program that were actually "preserved" under the JCPOA.
"Yes, there weren't nuclear weapons. Iran doesn't have a nuclear weapon," Vance said, arguing the deal "allowed Iran to sort of stay on this glide path toward a nuclear weapon if they flip the switch and press go."
"We think that there is a deal here that would reintegrate Iran into the global economy," he said ahead of the talks. "That would be really good for the Iranian people, but would result in the complete cessation of any chance that they can get a nuclear weapon. And that's what we're negotiating toward. And as the president has said, that's Option A."
If Option A is "very good for the Iranian people," Vance said, then Option B "is very bad."
"It's very bad for everybody," he said. "And it's not what we want, but it's better than Option C, which is Iran getting a nuclear weapon. That is what is completely off the table for the American administration. No ifs, ands or buts."
As for Trump, he said during a recent interview on NBC’s "Meet the Press" that he would only accept "total dismantlement" of Iran's nuclear program.
China is eager to hash out a trade deal with the U.S., according to President Donald Trump.
Trump’s remarks come as Treasury Secretary Scott Bessent is poised to launch trade negotiations with China in Switzerland on Saturday amid a steep tariff battle between Washington and Beijing.
"Scott's going to be going to Switzerland, meeting with China," Trump told reporters Thursday at the White House. "And you know, they very much want to make a deal. We can all play games. Who made the first call, who didn't make them? It doesn't matter. Only matters what happens in that room. But I will tell you that China very much wants to make a deal. We'll see how that works out."
The Trump administration announced widespread tariffs for multiple countries on April 2, following criticism that other countries' trade practices are unfair toward the U.S.
The administration later adjusted its initial proposal and announced on April 9 it would immediately impose a 145% tariff on Chinese goods, while reducing reciprocal tariffs on other countries for 90 days to a baseline of 10%. China responded by raising tariffs on U.S. goods to 125%.
Bessent said Tuesday that negotiations between the U.S. and China had not started, after China said Friday that Beijing was open to holding talks if the tariffs were rescinded.
Trump told reporters on Air Force One Sunday he wants a "fair" trade deal with China, claiming discussions with Beijing were in the works on multiple issues.
Trump has voiced support for tariffs for decades. The White House has called for tariffs to address the nation’s 2024 record $1.2 trillion trade deficit, and said the tariffs will bring back U.S. manufacturing jobs.
Bessent cautioned in April that the tariffs could cost China up to 10 million jobs, and said it’s incumbent upon Beijing to remove current tariffs on U.S. imports.
"I think that over time we will see that the Chinese tariffs are unsustainable for China. I've seen some very large numbers over the past few days that show if these numbers stay on, Chinese could lose 10 million jobs very quickly," Bessent told reporters at the White House on April 29. "And even if there is a drop in the tariffs that they could lose 5 million jobs."
"So remember that we are the deficit country," Bessent said. "They sell almost five times more goods to us than we sell to them. So the onus will be on them to take off these tariffs. They're unsustainable for them."
Bessent also told lawmakers Tuesday that the U.S. has launched discussions with various countries, and indicated that major trade deals could be announced "as early as this week."
President Donald Trump said the US did not instigate upcoming trade talks between the two nations.
Anna Moneymaker/Getty Images
China says the US requested an upcoming trade talk, but President Trump begs to differ.
American and Chinese officials are set to meet in Switzerland this weekend to talk trade.
The US and China have hurled tariffs, and insults, at each other over the past month.
Tensions are high between the US and China ahead of a planned trade talk, and the dueling superpowers can't even agree on who initiated the meeting.
US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer announced this week that they'll will be meeting with their Chinese counterparts in Switzerland this weekend to discuss US-China trade relations as Trump's heavy tariffs remain in effect and the trade war rages on.
But no one can agree who actually initiated the talks.
"The meeting between Chinese and US senior officials on economic matters was requested by the US side," China's spokesperson for the Ministry of Foreign Affairs, Lin Jian, wrote on X on Wednesday. "Recently, the US has said repeatedly it wants to negotiate with China."
Jian's comments echoed those of a spokesperson for China's Ministry of Commerce, who said in a press conference last week that the US had "recently taken the initiative to send messages to China multiple times through relevant parties" in hopes to start the conversation with China.
President Donald Trump has scoffed at the suggestion that the US had requested the meeting.
"They said we initiated? Well, I think they ought to go back and study their files, OK? I do think that," Trump told reporters Wednesday when asked about the upcoming meeting.
Since Trump imposed a 145% tariff on Chinese goods last month and China responded with its own 125% tariff on American goods, the countries have exchanged insults and blamed each other for the tariff.
"This tariff war was started by the US," Jian wrote in his Wednesday X post. "China firmly opposes the US's tariff hikes. Meanwhile, China is open to dialogue, but any dialogue must be based on equality, respect and mutual benefit. To pressure or coerce China in whatever way simply does not work."
On Wednesday, Trump flatly said "no" when asked if he would consider lowering his tariffs on China to help ease this weekend's talks, though he also recently said that the 145% tariff on China is "very high" and will "come down substantially."
Trump has previously railed against China for "ripping off" the US, while China has accused the US of "bullying" and said it risked becoming a "joke" on the world stage. Chinese social media has also exploded with memes mocking Trump and America.
The White House did not immediately respond to a request for comment from Business Insider.
Business Insider's Katherine Li contributed a translation for this story.
Treasury Secretary Scott Bessent defended Trump's trade policy.
Anna Moneymaker/Getty Images
Bessent defended Trump's trade policies during an ABC News interview on Sunday.
"In game theory, it's called 'strategic uncertainty,'" Bessent said of Trump's tariff strategy.
Bessent also said he believed there was a "path" to negotiations with China.
US Treasury Secretary Scott Bessent says President Donald Trump is using "strategic uncertainty" in trade negotiations with world leaders.
During an ABC News interview with "This Week" co-anchor Martha Raddatz on Sunday, Bessent firmly defended Trump's approach to tariffs despite sagging voter sentiment over his handling of the economy.
"In game theory, it's called 'strategic uncertainty,'" Bessent said of Trump's back-and-forth tariff strategy. "So you're not going to tell the person on the other side of the negotiation where you're going to end up. Nobody's better at creating this leverage than President Trump."
"He's shown these high tariffs — and here's the stick," he continued. "And the carrot is 'Come to us, take off your tariffs, take off your non-tariff trade barriers, stop manipulating your currency, stop subsidizing labor and capital, and then we can talk.'"
In early April, Trump made waves around the globe when he announced a series of steep tariffs on dozens of countries, many of which had been reliable US trading partners for decades.
However, just days after his announcement, Trump paused the highest tariffs for 90 days, retaining a 10% baseline rate for most countries.
Trump's motivation for announcing the array of levies is to attack the trade deficit and reorient what he's long argued are tariff policies that have placed the United States — and especially its manufacturing sector — at a major disadvantage in the global market.
Trump's trade policy has caused friction in its longstanding alliances with Canada and Mexico and ripped apart any relationship it had with China. Trump's actions this month have also contributed to volatility in the stock and bond markets. Many economists have critiqued the administration's trade strategy, questioning Trump's dramatic and unpredictable approach.
Trump has implemented a 145% tariff rate on Chinese goods, causing Beijing to respond by placing 125% tariffs on US goods — a severe economic escalation between the two global superpowers.
Still, Bessent on Sunday said he believes there's a "path" to resolve the trade dispute with China.
"The first path will be a de-escalation, which I think the Chinese are going to have to have," he said.
"A trade deal can take months, but an agreement in principle and the good behavior and staying within the parameters of the deal by our trading partners can keep the tariffs from ratcheting back to the maximum level."
President Donald Trump ramped up steep tariffs against Chinese imports to the U.S. this week while alleviating them for other countries during trade negotiations this week. He also signed a series of executive orders aimed at repealing Biden-era restrictions.
The Trump administration announced Wednesday it would lower reciprocal tariffs on other countries, while also revealing that the administration would immediately hike tariffs on Chinese goods to 145%. In response, China has raised its tariffs on U.S. goods to 125%.
Trump disclosed historic tariffs in a ceremony at the White House’s Rose Garden for a "Make America Wealthy Again" event on April 2, asserting that these new duties would generate new jobs for U.S. workers.
The tariff plan established a baseline tax of 10% on all imports to the U.S., along with customized tariffs for countries that place higher tariffs on U.S. goods. The baseline tariffs of 10% took effect Saturday, while the others took effect Wednesday at midnight.
But Trump announced in a post on Truth Social Wednesday that reciprocal tariffs announced last week would remain paused for 90 days, during which period the countries would only face the baseline 10% tariff.
"At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable," Trump posted on his Truth Social media platform on Wednesday.
Secretary of the Treasury Scott Bessent said that the tariffs suggest that China is at odds with the rest of the world.
"China is the most imbalanced economy in the history of the modern world," Bessent told reporters Wednesday. "They are the biggest source of the U.S. trade problems, and indeed they are the problem for the rest of the world."
Here’s what also happened this week:
Trump also signed an executive order this week aimed at reinvigorating the shipbuilding industry in the U.S., amid concerns that China is outpacing the U.S. in production.
China is responsible for more than 50% of global shipbuilding, compared to just 0.1% from the U.S., according to the Center for Strategic and International Studies.
The executive order requires agencies to craft a Maritime Action Plan and instructs the United States Trade Representative to provide a list of recommendations to deal with China’s "anticompetitive actions within the shipbuilding industry," among other things.
Trump also signed an executive order to reverse Obama- and Biden-era conservation measures that limited water pressure in showers in an attempt to "make showers great again." Former President Barack Obama initially imposed the water pressure restrictions, and Trump sought to ease some of them during his first term.
However, former President Joe Biden reinstated the measure, which limited multi-nozzle shower heads from releasing more than 2.5 gallons of water per minute.
"I like to take a nice shower, take care of my beautiful hair," Trump said Wednesday. "I have to stand in the shower for 15 minutes until it gets wet. Comes out drip, drip, drip. It’s ridiculous."
The Trump administration also unveiled plans this week for upcoming talks to negotiate with Iran on Saturday. While Trump has reiterated that these discussions will be "direct" nuclear talks, Iran has pushed back on that description and characterized them as "indirect" negotiations instead.
Middle East envoy Stever Witkoff will travel to Oman on Saturday and is slated to potentially meet with Iranian Foreign Minister Abbas Araghchi. However, Iran has maintained that the discussions will be held through a third party instead.
"The ultimate objective is to ensure that Iran can never obtain a nuclear weapon," Leavitt told reporters Friday. "The president believes in diplomacy, direct talks, talking directly in the same room in order to achieve that goal. But he's made it very clear to the Iranians, and his national security team will, as well, that all options are on the table and Iran has a choice to make. You can agree to President Trump's demand, or there will be all hell to pay. And that's how the president feels. He feels very strongly about it."
Fox News’ Bonny Chu, Danielle Wallace, and Caitlin McFall contributed to this report.
Treasury Secretary Scott Bessent denied the president's move to implement a pause on his tariffs was the result of declines in the financial markets, which have been causing great concern for investors.
The comments came after the president issued a pause Wednesday for 75 different countries, which, according to the Trump administration, have shown a willingness to negotiate trade deals in good faith with the United States. Simultaneously, the Trump administration increased its tariff rates on Chinese goods to 125%, which came after China imposed tariffs of its own in response to Donald Trump's "Liberation Day" tariff increase last week.
"This was driven by the president's strategy. He and I had a long talk on Saturday and this was his strategy all along," Bessent responded when asked if the tariff pause was the result of market declines. The Treasury Secretary also cited an "imbalance" in the responses from various countries, particularly China, in regard to their willingness to negotiate new trade deals.
"It is just a processing problem," Bessent said when asked if the market whiplash was a catalyst for the pause. "Each one of these solutions is going to be bespoke. It is going to take some time, and President Trump wants to be personally involved, so that's why we are hitting the 90-day pause."
Meanwhile, Bessent questioned claims from reporters that the bond market was "cratering" and said the information in front of him did not indicate as much. Trump, who also fielded questions Wednesday about the market volatility following his tariffs, similarly described the current bond market as "beautiful."
"I saw last night where people were getting a little queasy," Trump told reporters Wednesday about his view on the market declines in relation to his tariffs. "[Markets] went from, you know, pretty moderate today, but over the last few days, it looked pretty glum, to, I guess, they say it was the biggest day in financial history. That's a pretty big change."
"I think the word would be flexible," Trump added. "You have to be flexible."
Stocks did jump back up on Tuesday before sliding back down once again before the markets closed that evening. However, on Wednesday, as Trump made his announcement about the tariff pauses, stocks rallied again, with the S&P 500 seeing its best day since 2008, according to Market Watch.
Over the weekend, the president told Americans concerned about the ongoing market volatility to "hang tough," adding that his plan is already working with trillions of dollars already being poured into the U.S. economy.
"HANG TOUGH, it won’t be easy, but the end result will be historic," Trump wrote Saturday in a post on his social media platform Truth Social. "We will, MAKE AMERICA GREAT AGAIN!!!"
The White House declined to comment for this story.
Treasury Secretary Scott Bessent appeared on NBC's "Meet the Press" with Kristen Welker on Sunday.
AP Photo/Evan Vucci
Treasury Secretary Scott Bessent appeared on NBC News' "Meet the Press" on Sunday.
Bessent discussed President Donald Trump's tariffs and this week's stock market sell-off.
He rejected warnings of a recession and said more than 50 nations were trying to negotiate tariffs.
Treasury Secretary Scott Bessent appeared on NBC News' "Meet the Press" on Sunday, facing some pointed questions about the two-day stock market crash that followed President Donald Trump's "Liberation Day" tariff announcement this week.
During the interview, Bessent told host Kristen Welker that Trump's sweeping levies were necessary and pushed back at warnings of a recession.
"I see no reason that we have to price in a recession," he said.
"What we're looking at is building the long-term economic fundamentals for prosperity," he added.
Pressed whether Trump's latest barrage of tariffs would be permanent or whether they were simply a negotiating tactic, Bessent said Trump had "created maximum leverage for himself" and that over 50 countries were trying to negotiate the duties.
"More than 50 countries have approached the administration about lowering their non-tariff trade barriers, lowering their tariffs, stopping currency manipulation," he said, adding that any talks would take time.
Elsewhere in the interview, Bessent attempted to reassure Americans concerned about the potential impact to their retirement plans.
The Treasury Secretary said it was a "false narrative" that people looking to retire in the near future may be apprehensive about doing so after their retirement savings may have taken a hit in the stock market this week.
"Americans who want to retire right now, the Americans who put away for years in their savings accounts, I think they don't look at the day-to-day fluctuations," Bessent said.
"In fact, most Americans don't have everything in the market," he continued. "The reason the stock market is considered a good investment is because it's a long-term investment. If you look day to day, week to week, it's very risky."
US President Donald Trump announced new import tariffs.
Chip Somodevilla/Getty Images
Trump announced his "Liberation Day" tariffs on Wednesday, and a baseline 10% rate on trading partners came into effect on Saturday. Some nations, such as Cambodia, Laos, and Vietnam, are set to face far higher rates that are set to begin on April 9.
A special envoy from Vietnam will head to the US to continue talks on the matter, a senior Vietnamese official said, according to a government press release.
President Donald Trump marked the week by unveiling an unprecedented wave of tariffs on imports to the U.S., aligning with his long-held position that other countries have taken advantage of the U.S. in trade.
Trump disclosed the historic tariffs in a ceremony at the White House’s Rose Garden for a "Make America Wealthy Again" event, asserting these new duties would generate new jobs for U.S. workers.
"For nations that treat us badly, we will calculate the combined rate of all their tariffs, nonmonetary barriers and other forms of cheating," Trump said Wednesday.
"And because we are being very kind, we will charge them approximately half of what they are and have been charging us," he said. "So, the tariffs will be not a full reciprocal. I could have done that. Yes. But it would have been tough for a lot of countries."
The tariff plan establishes a baseline tax of 10% on all imports to the U.S., along with customized tariffs for countries that place higher tariffs on American goods. The baseline tariffs of 10% will take effect Saturday, while the others will take effect Wednesday.
The Trump administration previously imposed a 25% tariff on imported vehicles, up to 25% tariffs on certain goods from Mexico and Canada and a 20% tariff on shipments from China. The tariffs already imposed on Canada and Mexico remain unaffected, but the new tariffs on China will be added on top of the previous duties on Beijing, according to the White House.
The tariffs have faced backlash from both parties in Congress, and allies, including Canada and Australia. A bipartisan group of senators introduced legislation Friday called the Trade Review Act of 2025 that would require the executive branch to provide Congress a 48-hour notice before imposing tariffs. Likewise, the measure would permit tariffs to expire after 60 days, unless Congress moves to approve a joint resolution codifying the duties.
Treasury Secretary Scott Bessent urged countries against imposing retaliatory tariffs against the U.S. in response.
"My advice to every country right now: Do not retaliate," Bessent said in an interview Wednesday with Fox News. "If you retaliate, there will be escalation."
Trumpalso disclosed that several members of the National Security Council, headed by National Security Advisor Mike Waltz, were fired Thursday. Trump said the firings affected a small number of employees, and he still had a high level of confidence in his national security team.
"Always, we’re going to let go of people we don’t like or people we don’t think can do the job or people who may have loyalties to somebody else," Trump told reporters on Air Force One when asked about media reports on the firings.
The firings come amid scrutiny over Waltz’s use of a Signal group chat to discuss strikes in Yemen after a journalist was accidentally added to the group.
Waltz created the group chat that included White House leaders like Vice President JD Vance and Secretary of Defense Pete Hegseth. The chat also included Atlantic editor-in-chief Jeffrey Goldberg.
The White House said classified information was not shared via the encrypted messaging service. However, The Atlantic published the full exchange of messages March 26. The messages included certain attack details, including specific aircraft and times of the strikes.
Still, the White House has defended Waltz and said the White House is no longer looking into the incident.
"As the president has made it very clear, Mike Waltz continues to be an important part of his national security team," White House press secretary Karoline Leavitt told reporters Monday. "And this case has been closed here at the White House as far as we are concerned."
The White House confirmed that SpaceX and Tesla CEO Elon Musk would depart his position spearheading the Department of Government Efficiency (DOGE) later this spring in response to reports from Politico that Trump was disclosing to those close to him that Musk would "step back" from his role with DOGE in the forthcoming weeks.
"This ‘scoop’ is garbage," Leavitt posted on X Wednesday. "Elon Musk and President Trump have both *publicly* stated that Elon will depart from public service as a special government employee when his incredible work at DOGE is complete."
Musk is a "special government employee." The executive or legislative branches are permitted to take on temporary employees to address short-term projects for up to 130 days in a single 365-day period. For Musk, that period of time will expire at the end of May.
Musk and Trump have previously said they anticipate Musk will complete the work necessary for DOGE within that window of time.
