Trump tariffs: start of the backpedaling begins

The start of “the great tariff backpedal is officially underway,” predicts Nigel Green, CEO of one of the world’s largest independent financial advisory and asset management organizations, deVere Group.

It comes following President Donald Trump’s announcement of a 90-day pause on tariffs for non-retaliating countries confirms what Nigel Green warned just last week: “economic gravity always wins — and political bluster has its limits.”

Markets surged on the news. Wall Street’s S&P 500 leapt 6%, while the Nasdaq Composite exploded almost 8% higher. Investors had been bracing for deeper damage.

“Instead, they were given the first proof that Washington is beginning to reckon with the consequences of its own economic experiments,” notes the deVere CEO.

In the bond market, the reaction was more muted but no less telling. The 10-year Treasury yield edged up by 0.1 percentage point to 4.37%, showing investors are still cautious about what comes next.

Relief is real — but trust will take longer to rebuild.

“The markets have been crying out for common sense,” says Nigel Green.

“The economic vandalism of tariffs was never sustainable. A backpedal wasn’t just likely — it was always inevitable.

“You can’t fight the basic needs of markets, businesses, and consumers without consequences.”

Trump’s move to suspend tariffs for countries that have not retaliated is “a quiet but unmistakable admission.”

Trade wars were never a cost-free political tool. They sparked inflation, hammered supply chains, and saddled consumers with higher prices. They spooked companies into holding back investment, slowed hiring, and created deep uncertainty across the global economy.

“Investors don’t have the patience for chaos dressed up as strategy,” Nigel Green adds.

“They want clarity. They want stability. They demand leadership that actually supports growth rather than sabotages it.”

He continues: “Today’s powerful rally proves the point. Markets are prepared to reward sanity — instantly and emphatically. But they will just as quickly punish any signs that this pause is merely a temporary political stunt rather than the start of a full strategic rethink.”

At the heart of it lies a bigger question: can the administration afford to continue threatening the foundations of global trade without further damaging the dollar’s credibility as the ultimate safe haven?

“Every erratic policy move chips away at confidence in the dollar’s future,” warns Nigel Green.

“Today’s 90-day reprieve is welcome — but the longer-term damage to America’s financial leadership won’t be reversed overnight.”

Tariffs were always a blunt instrument. Designed to look tough, they ended up exposing the fragility of an interconnected economy. When the price of everyday goods spikes, it’s not foreign governments that pay — it’s domestic consumers. When supply chains seize up, it’s businesses at home that suffer first.

The administration’s retreat shows a growing recognition that economic pain travels faster than political spin.

“This is just the first crack,” says the deVere CEO.

“Once you lose the trust of the markets, once you inject instability into the global system, you don’t just get to turn it off with a press conference. Recovery will take more than a 90-day patch. It will take a full strategic reset.”

Investors should be using this moment not just to celebrate, as the tariffs against China are also increased, meaning the world’s two largest economies are in a trade war, but to reposition — and prepare for more volatility ahead.

Nigel Green concludes: “The markets fired a warning shot. Stability and clarity are not optional. They are demanded — and if Washington fails to fully deliver, this temporary optimism could fade as quickly as it flared.”