Is the US Economy Headed for Trouble After Tariff Spat? White House Responds
The White House has swiftly debunked claims suggesting that US President Donald Trump was considering a 90-day pause on tariffs, a rumour that briefly jolted global markets on Monday.
Washington: The White House has swiftly debunked claims suggesting that US President Donald Trump was considering a 90-day pause on tariffs, a rumour that briefly jolted global markets on Monday.
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Speculation Triggers Market Turbulence
The speculation originated from comments allegedly made by Kevin Hassett, Director of the National Economic Council, which quickly spread on social media. Investors responded with high volatility: the Dow Jones surged by over 800 points from an initial 1,700-point drop before falling back to a 629-point loss. Similar swings were seen in the S&P 500 and Nasdaq composite.
White House Labels Report as “Fake News”
The official White House X (formerly Twitter) account, @RapidResponse47, denied the speculation soon after the markets reacted. White House Press Secretary Karoline Leavitt told CNBC’s Eamon Javers that the wire report citing Hassett was “fake news.”
During a Fox News interview earlier, Hassett had avoided confirming or denying any tariff delays, saying, “The president is going to decide what the president is going to decide.”
Trump Reinforces Tough Stance on Trade
Later in the day, President Trump posted a video clip from Fox Business host Maria Bartiromo on Truth Social, where she emphasized Trump’s refusal to soften his stance. The clip also highlighted falling interest rates and oil prices, which she credited to the administration’s deregulation efforts.
Trump added his own remarks to the post: “It’s not sustainable” for the US to lose “$1.9 trillion on trade.” He also reiterated concerns over US spending on NATO, saying, “The U.S. can’t lose money on trade and also spend a lot of money on NATO in order to protect European nations.”
Global Trade Tensions Remain High
The episode once again highlighted how sensitive financial markets remain to policy signals from the White House. With fears of a prolonged trade war continuing to weigh on investor sentiment, the Trump administration’s messaging on tariffs remains a key driver of global economic outlook.
