[Source/Observer Network, Wang Kaiwen] After US President Trump announced the so-called "reciprocal tariff", the US stock market witnessed an "epic crash". Just a moment ago, US Treasury Secretary Mnuchin, who was still comforting the public that the stock market crash was a "short-term reaction", flew to the state of Florida on April 6th to find Trump, attempting to persuade him to "make changes".

Politico reported, citing two sources familiar with the matter, that Mnuchin urged Trump to focus on negotiating "favorable trade agreements" and begin emphasizing more on reaching agreements with other countries; otherwise, the US stock market would face further risks of decline. "Mnuchin's view is that 'unless you make changes, the market will continue to collapse'," one source said. "You (Trump) may not abandon this policy, but you must start talking about negotiation issues and the ultimate outcome."

A second source said that after Trump announced the new tariff measures, 50 countries had proactively proposed discussions regarding the US' new tariff system, which presents an opportunity for the next step. The source also described Mnuchin's view that Trump's purpose in introducing tariffs on February 2nd was to exert "maximum influence" on foreign governments.

Treasury Secretary Mnuchin Video screenshot

The report pointed out that in recent days, Trump and senior US government officials have been calling on Americans to prepare for a long, painful, possibly permanent trade war, while Mnuchin might be the most powerful voice urging Trump to send an "end" signal to anxious Americans.

Recently, Mnuchin has been embroiled in "resignation" rumors. On April 4th, MSNBC host Stephanie Ruhle said, "I heard he (Mnuchin) is looking for a way out, finding opportunities to go to the Federal Reserve. In the past few days, he has really damaged his reputation and resume in the market." Ruhle said she learned from sources that Trump "doesn't listen" to Mnuchin, and Mnuchin is considered an "outsider" within Trump's inner circle.

However, publicly, Mnuchin has consistently defended Trump's new tariff policies. He stated that Trump should pay more attention to how these policies can bring more favorable agreements to the United States and create more jobs domestically. Mnuchin also denied that tariffs would lead to an economic recession in the US, saying that the stock market crash was a "short-term" market reaction, and the Trump administration's goal was to "build a long-term foundation for economic prosperity".

"Politico" reported that Mnuchin's advice seemed to encourage Trump to moderate his most absolutist rhetoric and open the door to negotiations with some countries. Mnuchin posted on social platform X on the afternoon of the 7th, stating that Trump instructed him and the US Trade Representative to initiate negotiations with Japan. He also claimed that "about 70 countries" had already contacted the US.

Meanwhile, Trump hinted at negotiations with other countries on the afternoon of the 7th. He opened the door for "fair and good deals" with every country, "permanent tariffs can exist, or negotiations can take place because we need something beyond tariffs."

However, when asked if he was willing to suspend tariffs for negotiations, Trump replied, "We are not considering these." He claimed that tariffs were "very important" to his economic agenda.

In response to Trump's remarks, White House Press Secretary Caroline Levitt explained to "Politico" that some tariffs will be permanent, while others may require negotiations. She also stated that it does not mean Trump will "reach an agreement," but it does mean he is willing to consider reaching an agreement.

Mnuchin said in an interview with Fox Business News on the afternoon of the 7th that these negotiations could last several months, and Trump would personally participate in them.

On April 7th local time, the US stock market briefly surged due to rumors of a "tariff suspension," with Dow Jones Market data showing that within 10 minutes from 10:08 to 10:18, the value of the index increased by 2.4 trillion US dollars. As the White House refuted the rumors, the stock market fell again.

"Politico" pointed out that this volatility reflects Wall Street's unease, as they do not know how to interpret the inconsistent messages from the White House. They also seem unwilling to overly enthusiastically react to subtle changes in information, such as Wall Street not being excited by the news of negotiations between the US and Japan.

This article is an exclusive piece by Observer Network and cannot be reprinted without permission.

Original article: https://www.toutiao.com/article/7490848182189212186/

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