Trump is defiantly responding to the Tariff Debacle on the markets

Trump is defiantly responding to the Tariff Debacle on the markets

The comprehensive new tariffs of President Donald Trump come across resistance from all corners - from stress on the stock markets, to foreign retaliation measures, to displeasure in the American economy and skepticism on the part of the Federal Reserve and some allies in the congress. So far, the President remains persistent, despite the global turbulence.

Mixed signals from Trump

After a day and a half of inconsistent messages from Trump and leading administrative officials about whether the tariffs are the start of a negotiation or a permanent change in US economic policy, Trump did not have the opportunity to clarify. He decided to start his day on Florida golf course.

The financial markets already fell when he left his Mar-A-Lago resort to start a short trip to the Trump International Golf Club. He waved to the audience when his presidential sedan drove through the gates. While Trump has traveled to Florida almost every weekend since he took office, he chose the day to leave the White House earlier than usual, which created a contrasting scene between the golf course in one of the wealthiest areas of America and the growing economic concerns.

market reactions on Trump's tariffs

US shares are Feed for the second time after China announced on Friday, 34% retaliatory zölle on US goods. This development illustrated how much outside of Trump's control, while his economic team tries to enforce the most comprehensive and disruptive tariffs for over a century. The Dow concluded in a correction, more than 10% under his record high in December.

An official of the White House said that the President was "completely focused on customs policy on Friday" and continued to broadcast updates on discussions with foreign leaders. The official rejected the claim that Trump was excited by the market reaction and explained that the president warned long of the short-term pain that could be caused by his customs vision and the America First-Aga.

confusion about Trump's strategy

The flowing nature of Trump's own perspective about the purpose of his new tariffs threateningly for a clear message from his most important economic officers that the retaliation tariffs would be implemented on April 9 - regardless of the fact that Trump's own consultants were split before the announcement.

behind the scenes, this reflected the need to transmit a clear message to the turbulent markets, which have been shaped by uncertainties for almost two weeks. The need for unity was emphasized in the discussion points that were circulated in Capitol Hill on Thursday. However, the discipline of the message - or its lack - did not help to address the acute threat from retaliation measures that became a reality on Friday.

reactions and feedback from business

While the president sent several messages throughout the day, consultants said that Trump intentionally considered it advisable to do no public statements or to answer questions on the camera, while the trading markets were open on Friday. Despite the hard defense of the customs strategy by the White House, a growing feeling of frustration and anger about the universal global reactions was worrying.

"The president is not led by the markets, but of course he watches them like everyone else," said a Republican political advisor Trump to CNN and spoke on the condition of anonymity so as not to burden talks in the west wing.

Many of the President's external allies are confused about communication around the tariffs, which were classified as part of the final plan, from as "retrofitting" to "generously", which represents a completely different calculation.

Next steps and negotiations with other countries

A central question was how open Trump was to negotiate and to what extent he was aware of the sharp criticism. The White House received calls from company owners and association lobbyists, but it remained unclear how much Trump was informed about the negative reactions and whether this would influence his attitude in the days before the next customs date.

A new tax collector of 10% on all US imports will come into force on Saturday, with even higher tariffs that are planned for April 9. Trump criticized Beijing for the retaliation measures against his tariffs and claimed that China had reacted "panicked" after he had announced an additional 34% to all Chinese goods imported in the USA.

The Trump administration has advised countries that are affected by the tariffs not to panic-but to find the conversation. Trump criticized countries such as Canada and China that threatened retaliation.

economic uncertainty and the pressure on the Federal Reserve

On Friday, the President also tried to put the Federal Reserve under pressure, to reduce interest rates, and expressed the long-lasting criticism of Fed chairman Jerome Powell. "He is always too late, but now he could change his image quickly," Trump posted Trump on Truth Social. "Lower interest rates, Jerome, and stop with the political games."

At an event in Arlington, Virginia, Powell said that the central bank was surprised by the scope of Trump's tariffs. "We are faced with a very uncertain outlook with increased risks for both higher unemployment and higher inflation," said Powell.

focus on tax reforms

After weeks of internal debates about the retaliatory tariffs - and the constant reference of the president on his preference for this measure - many of his allies have enough of the discussion and think it is time to focus on his tax plans.

Hope is that tax relief - in particular the abolition of taxes to tips and overtime - is easier to understand and are more politically advantageous than the tariffs that are complex and increase the risk of increasing prices.

The implementation of these tax plans is an ongoing process in Capitol Hill, where close majorities and different political views appear during the negotiations on the procedure. The challenges that are necessary for both the historical tariffs and the tax reform are clearly shown in the internal arguments that have preceded it.

cnns Kevin Liptak and Alayna Treene contributed to this report.