Trump 90-Day Tariff Pause Rumor Causes Stock Whipsaw Before White House Calls It ‘Fake News’—Here’s What Happened

07 Apr 2025 by Ty Roush · Forbes

Topline

A misquoted claim that President Donald Trump is considering a 90-day pause on his far-reaching reciprocal tariffs is “fake news,” the White House said Monday, as Trump champions his levies while U.S. markets face historic selloffs.

Trump has championed his tariffs despite a historic selloff across U.S. markets, claiming his levies ... More would bring in “billions."AFP via Getty Images

Key Facts

The White House said Monday that Kevin Hassett, director of the National Economic Council, never indicated Trump would consider a 90-day pause on his tariffs during an appearance on Fox News, and White House press secretary Karoline Leavitt told CNN reports citing this claim are “fake news.”

During his interview, Hassett was asked whether Trump could call a “90-day timeout” on his tariffs, to which Hassett responded: “I think the president will decide what the president is going to decide.”

Hassett’s quote appeared to be misinterpreted on X, where some users claimed Hassett confirmed Trump would consider a pause, leading to reports citing his statement.

The Dow Jones Industrial Average, S&P 500 and Nasdaq each briefly rose following the reports, including the S&P rising more than 6% over a 30-minute period, before markets fell again after the White House’s rebuttal.

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How Has Trump Defended His Tariffs?

A rebuttal from the White House follows several statements from Trump in recent days in defense of his tariffs imposed on U.S. trade partners. He backed the levies in a series of Truth Social posts Monday, writing he believed the tariffs would bring in “tens of billions of dollars” to the economy. In another post, Trump wrote the U.S. “has a chance to do something that should have been done DECADES AGO,” arguing Americans—whom Trump warned not to be “weak” or “stupid”—should be “patient” as “GREATNESS will be the result.” Trump touted sinking oil prices as a victory for his tariffs and called on the Federal Reserve to cut interest rates, though he falsely claimed there is “NO INFLATION,” as economists and policymakers have said inflation would worsen under his tariffs and inflation remains above the Fed’s 2% goal. Other posts shared by Trump on Truth Social featured clips from Fox News as commentators and lawmakers supported his tariffs, including a video of host Maria Baritromo saying, “Rates are plummeting, oil prices are plummeting, deregulation is happening,” while adding, “President Trump is not going to bend.” Last week, Trump appeared to refer to the levies as an “OPERATION” that would enable the economy to be “FAR STRONGER, BIGGER, BETTER AND MORE RESILIENT THAN EVER BEFORE,” and while aboard Air Force One on Sunday, Trump said, “Sometimes you have to take medicine to fix something.”

Crucial Quote

“Some day people will realize that tariffs, for the [U.S.], are a very beautiful thing!” Trump wrote on Truth Social on Sunday, adding “massive financial deficits” with China, the European Union and other trade partners would be “cured” with tariffs.

Billionaires—dimon, Ackman, Musk And More—criticize Trump’s Tariffs

Some billionaire backers of Trump have criticized or addressed economic issues that could arise as a result of Trump’s tariffs. Pershing Square founder and Trump supporter Bill Ackman said about the tariffs on Sunday: “We are heading for a self-induced, economic nuclear winter, and we should start hunkering down.” Ackman said Monday he is “frustated watching what I believe to be a major policy error occur,” after Trump made “huge economic progress that is now at risk” because of tariffs. JPMorgan Chase CEO Jamie Dimon told shareholders Monday that while there are “legitimate reasons” for imposing tariffs, they will likely increase inflation and are “causing many to consider a greater probability of a recession” while potentially affecting “America’s long-term economic alliances.” Hedge fund billionaire Daniel Loeb, who previously said he believed Trump’s initial tariffs on Mexico and Canada wouldn’t harm the stock market, said Monday a recent selloff is “all in the head of 1 person” who could “change his mind at any time.” Virgin Group founder Richard Branson warned in a series of social media posts the U.S. could “face ruin for years to come” unless Trump decides to “change course” on his tariff policies. Elon Musk, Tesla’s CEO and a close Trump ally, has criticized Trump’s top trade adviser and recently shared a video of economist Milton Friedman, who defended free trade and argued for the benefits of importing goods.

Key Background

During what Trump advertised as “Liberation Day” on Wednesday, he announced a baseline 10% tariff across most U.S. trade partners. Trump has argued tariffs would return and increase manufacturing in the U.S., a move that would punish countries for what he called unfair trade practices. Details about the tariffs were largely unknown before his announcement, as the White House said Trump and his advisers were “perfecting” rates hours earlier, Leavitt said. Trump previously floated a 20% universal tariff on all imported goods during his 2024 campaign, and Treasury Secretary Scott Bessent said last month tariffs would target the 15% of countries that account for most of the trade with the U.S. Some market analysts have warned Trump’s tariffs could increase prices for numerous products, including coffee, rice, chocolate, and electronics. The White House has argued tariffs would not impact consumer prices, however, citing a statement from former Treasury Secretary Janet Yellen last year. Yellen’s quote, “I don’t believe that American consumers will see any meaningful increase in the prices that they face,” appears to be shortened, as she later says tariffs were “very carefully targeted” at sectors already supported by the Biden administration.