In a stunning pivot, President Trump’s decision to pause reciprocal tariffs on most nations—while slamming China with a 125% levy—appears less a calculated masterstroke and more a frantic response to trembling financial markets.
Clay Lowery, a former Treasury heavyweight now at the Institute of International Finance, revealed the move was sparked by a panicked exodus of investors from stocks and Treasuries.
The 10-year Treasury yield’s alarming spike, he noted, sent shockwaves through the White House, Treasury, and Commerce Department, signaling a potential financial cliff.
“They weren’t aiming for a crisis,” Lowery quipped, “but the writing was on the wall.”
Trump himself admitted the jitters played a role, casually likening rattled investors to golfers with the “yips.”
Yet, the 90-day breather—leaving a 10% universal tariff, 25% on steel, aluminum, and autos, and more hikes looming—may be too little, too late.
Lowery, drawing from his 2005-2009 Treasury stint, questioned whether this patchwork fix can soothe markets or merely delay the inevitable. Behind the scenes, whispers of discord among Trump’s advisers hint at a policy born of chaos, not clarity.
As uncertainty festers, oil prices remain a volatile sideshow, teetering on the edge of this high-stakes economic gamble.
