WASHINGTON (DM) — After days of a tanking stock market, criticism from prominent bankers, and warnings of a recession, President Donald Trump sat down with Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent in the Oval Office on Wednesday morning to plot a way out.
The result: a 90-day pause on his reciprocal tariffs.
Their meeting was ‘fairly early’ in the day, Trump told reporters in the Oval Office, but he argued his decision had been a long time coming.
Treasury Secretary Scott Bessent (left) and Commerce Secretary Howard Lutnick (right) in the Oval Office with President Donald Trump – the two men met with the president to craft the plan for the 90-day tariff pause
“I’ve been thinking about it. I’ve been dealing with Scott, with Howard, with some of the people that were professional. Probably came together earlier this morning, fairly early this morning,” he said.
He said his Truth Social post, which announced 125% tariffs on China and the 90-day pause, was all him.
“It was written from the heart,” Trump said, adding it was “positive for the world.”
White House Press Secretary Karoline Leavitt (left) and Treasury Secretary Scott Bessent (right) in a quickly arranged session with the press to explain the tariff pause
He tapped it out from the Oval Office, Lutnick and Bessent at his side.
For the past seven days – since Trump stood in Rose Garden and declared it Liberation Day – his staff stood firm on his tariffs, doubling down on the president’s plan no matter the economic or political consequences.
Asked on Tuesday if the president would consider a delay on the tariffs, White House press secretary Karoline Leavitt said: ‘The President was asked and answered this yesterday. He said he’s not considering an extension or delay. I spoke to him before this briefing. That was not his mindset. He expects that these tariffs are going to go into effect.’
Treasury Secretary Scott Bessent looks on as President Donald Trump talks to members of the press aboard Air Force One
Trump’s decision on the pause – characterized by many as an about-face – came as such as shock many in the White House didn’t know about it.
The press staff, the officials authorized to speak for the president, learned about it when a dozen reporters ran into to ask about the president’s Truth Social post, wanting to clarify some of the details.
Confusion was visible on their faces.
Trump’s trade adviser Peter Navarro was not a part of the Oval Office meeting
Fox Business reporter Edward Lawrence described the situation: “I was actually the one who walked into the lower press here – that’s where a number of the press communication folks are … and I asked them, ‘Is it true, a 90 day pause?’ And they looked at me with a blank stares,” he said on his network.
“I had to tell the press folks the president put on truth social and was considering the 90 day pause on tariffs.”
Staff scrambled to put together a response.
They hastily arranged for Bessent to come outside and speak to reporters on the South Drive of the White House.
“I understand you have a lot of questions. So in the effort of transparency, we’re here to talk about the president’s latest statement regarding his America first trade plan,” press secretary Karoline Leavitt told the media. TV networks carried the event live.
Leavitt stood at Bessent’s side as he explained details of Trump’s decision and answers questions.
When DailyMail.com asked him about the Oval Office meeting and what happened in it, Leavitt whispered to him: “it was the president’s decision.”
“It’s all the president’s decision,” Bessent said in response, adding again: “The three-month pause was his idea.”
Bessent took the lead role in shifting Trump’s position. He flew to Florida over the weekend to meet with the president at Mar-a-Lago.
Reporters traveling back with Trump on Air Force One on Sunday – which included a DailyMail.com reporter – could see Bessent standing behind the president as Trump took questions from the media in the press cabin.
The president was notably grumpy as he was asked about the repercussions of his tariffs. Bessent frowned behind him.
Staff, from that point, repeatedly credited Trump, saying it was his idea and come from his tariff policy.
“It brought 75 countries forward to negotiate,” Bessent said.
Commerce Secretary Howard Lutnick spoke to reporters later in the day, arguing: “The answer is, the president is focused on America, okay, and he’s going to try to negotiate the best deals for America with each of these great countries that are calling us that want to talk.”
Staff let Trump sell his decision.
The president answered several questions at an event honoring race car champions. And his time in the Oval Office to sign executive orders that afternoon, an event on his schedule originally listed as ‘close press,’ was opened up to the White House press pool.
As the reporters moved into the Oval, White House trade adviser Peter Navarro was walking down the South Lawn to do a TV appearance at one of the many cameras set up on the lawn. He turned around and went back inside instead of going on air.
Navarro, Trump’s longtime trade adviser who pushed the aggressive tariff policy, was notably absent from Wednesday morning’s Oval Office meeting.
Leavitt canceled a television appearance she had been scheduled to make that afternoon.
Trump said he made his decision because people were “getting yippie” about it.
“I thought that people were jumping a little bit out of line. They were getting yippie, you know, getting a little bit yippie, a little bit afraid,” he said at the White House during an event honoring car racing champions.
Trump appeared to be referring to the “yips” – when golfers start twitching and missing putts.
He also explained the change in the past 24 hours – from no negotiations or backing down to the 90-day pause.
“A lot of times it’s not a negotiation until it is,” Trump said. “And that happens.”
The president’s decision to slap more than 100 nations around the world with tariffs was controversial, even among his own party.
In the House of Representatives, GOP leaders used a legislative maneuver to spare Republican lawmakers a politically tricky vote on the tariffs.
The fallout continued today.
Chief of Staff Susie Wiles is convening stake holders in her West Wing office.
Trump economic adviser Kevin Hassett told reporters this morning that Wiles’ office asked the principals who “have skin in the game” to meet today “to discuss what their views are about how this should go.”
There are other theories on why Trump changed his mind.
Fox Business senior correspondent Charles Gasparino argued Trump’s tariff pause was largely motivated by alarming activity in the bond market.
‘From what I understand — and I’m getting this from people that are talking to the White House,’ he said on America Reports, that ‘it’s the bond market and the sort of lending markets that’s the plumbing of the economy; and those markets were imploding last night. And that’s why we have a 90-day freeze.’
Overall the tariff-related market drop amounted to more than 4,500 points sending panic around the world.
The market rebounded after Trump’s announcement about the pause. The S&P 500 rose more than 9 percent — its sharpest single-day gain since October 2008.
Trump noticed and bragged about it.
“The biggest increase in the history of the stock market is pretty good,” he told reporters.
By EMILY GOODIN/Daily Mail
