US President Donald Trump’s political allies reacted with relief after Wednesday’s U-turn on tariffs, insisting it was part of a wider plan.
Trump backed off imposing worldwide higher-rate tariffs, or taxes on imports. But he ratcheted up his trade war with China and kept a lower 10% tariff rate in place globally.
The White House said it was all a negotiating tactic to extract more favourable trade terms from other countries. Billionaire supporter Bill Ackman, who earlier questioned the president’s rationale, said it was “brilliantly executed”.
But one sceptical Republican senator said the baseline rate of 10%, still a century-high for American protectionism, was “bad”.
The New York Times has suggested that Trump ultimately was persuaded to act by investors selling off US government bonds, although his team gave a different version of events.
Treasury Secretary Scott Bessent said dozens of countries during the recent period of market volatility contacted the US to renegotiate their trading relationships. “This was his strategy all along,” Bessent told reporters.
“President Trump created maximum negotiating leverage for himself,” Bessent added.
White House Press Secretary Karoline Leavitt and House Speaker Mike Johnson, a fellow Republican, echoed that theme.
Trump said his import taxes would address unfairness in the global trading system, as well as bring jobs and factories back to American shores.
Markets around the world rallied after Trump’s U-turn – something his allies were also quick to highlight, along with the perceived growing isolation of China.
Offering his own endorsement in a post on X, Ackman cited Trump’s book The Art of the Deal, applauding the US president for his “textbook” deal-making.
Ackman previously urged that Trump pause additional tariffs, which he suggested could cause “a self-induced, economic nuclear winter”. The warning was a departure from Ackman’s pre-election support for Trump.
Some Republicans – including a group of US senators – struck a tone that was more relieved.
“I think jubilation is too strong a word, but… it was positive,” Senator John Cornyn told Politico.
Speaking to the same outlet, Senator Rand Paul continued his criticism of Trump’s tariffs. He highlighted the “baseline” rate for countries around the world.
“Ten per cent tariffs are bad, but they’re better than 60%,” he said, according to Politico.
House members interviewed anonymously by Axios went further. One said a lack of communication from Trump’s inner circle left them blindsided, and a second bemoaned that they found out through the media.