Trump softens, steps back, and suspends his tariffs, except on China.

If President Joe Biden had done a tenth of what Donald Trump has done since taking office, his detractors would be calling him senile, but Trump seems to be forgiven for everything and sees every folly as "strategic."

Many are no longer surprised. This Wednesday, the Republican president announced a "pause" in his tariffs for almost the entire world, after markets reacted in free fall and several governments expressed their opposition, especially when the European Union said it would respond forcefully.

During an appearance at the White House, Trump said people were “starting to get nervous” and that he had been watching Treasury bonds.

“Last night I saw that people were starting to get nervous. But if you look at it now, it's beautiful,” he commented, as if talking about the debt market were a matter of aesthetics.

The about-face comes just a week after imposing the highest tariffs in more than a century. The New York Stock Exchange plummeted more than 10% in two days.

The world's major economies accused him of causing instability. And yet, Trump claimed that Wednesday was "the greatest day in the history of U.S. finance."

90-day pause for almost everyone, but not for China

The measure means that for the next three months, most US trading partners will only pay a base tariff of 10%, instead of the higher rates that had been announced.

The European Union, which was originally scheduled to receive a 20% penalty, is being saved first. It has promised to repay it in the coming days.

The only countries left out of this truce are China and a few other countries. Trump raised tariffs on China from 104% to 125%, citing a "lack of respect for the markets." Beijing, for its part, responded with 84% tariffs on US products and restrictions on key exports.

Despite this standoff, Trump has softened in recent days and assured that the two countries will reach an agreement.

"We're going to make a deal with China and all the other countries. I just want fairness," he said, after announcing the largest tariff increase in modern history.

Does he really know what he's doing? Confusion in his cabinet

During the day, there was also a clear lack of coordination among cabinet members.

Treasury Secretary Scott Bessent said Mexico and Canada would pay the 10% tariff, but the White House later denied that information. "Neither of these two countries will receive the base level of 10% at this time," a presidential official said.

The European Union, which had warned it would soon retaliate against previous tariffs on steel and aluminum, was relieved to learn that only 10% will be imposed for now.

European Commission President Ursula von der Leyen called the pause “a smart step to stabilize the global economy,” but warned that Europe needs more predictability and not “a roller coaster ride” in trade relations.

Change, a reaction to markets and pressures

Although Trump denied that his about-face was due to the stock market crash, his own statements contradict this. He said he had been closely monitoring Wall Street's movements and that, after his announcement, stocks rose "between 6% and 8%."

In fact, the market had lost more than five trillion dollars in two days, and major analyst firms were talking about stagflation and recession.

JPMorgan raised the probability of a US recession to 60%. Moody's warned of a possible deterioration in sovereign credit.

The National Retail Federation warned that consumers will pay more than $2.100 more per year due to the price hike. And even Trump's allies were beginning to question the aggressiveness of the plan.

Negotiations underway with Asia and Latin America

Trump and his team announced they will begin negotiations with Vietnam, Japan, South Korea, and India, among others. The message is clear: no retaliation, no truce. “Don't retaliate and you will be rewarded,” Secretary Bessent stated.

Brazil and other Latin American countries will maintain the 10% tariff for now, although the administration said it is "willing tocuc“har” to those who come to negotiate.

A war without clear logic or defined objectives

The episode has made it clear that Trump's trade strategy does not respond to predictable patterns.

While it strikes at historic allies like Germany, Japan, and France, it exempts dictatorships like Cuba, Russia, and North Korea from sanctions, claiming they already have sanctions in place or that they don't trade "enough."

Even remote territories like Saint Pierre and Miquelon and uninhabited islands in Antarctica made it onto the list of sanctioned countries. Some analysts believe the criterion used was the internet domains of each location.

With the global economy in turmoil and marketscupBarely fading away, Trump's about-face is not just a pause, but a sign that the president is beginning to feel the effects of his own war.