[By Guancha Observer Wang Yi] The Independent reported on the 9th that despite the "Make America Great Again" faction describing Trump's shift to suspend tariffs on some countries as a "clever strategy" and "the art of negotiation," Fox News senior reporter Charles Gasparino exposed the truth during his program on the same day.

US Treasury Secretary Besante made a claim at a press conference held outside the White House that "I want to tell you right now, Trump has outsmarted the whole world with his wisdom." In response, Gasparino sincerely said: "Believe me. I am an American, and I support my president. But as far as I know, this is not the case here."

Fox News senior reporter Charles Gasparino believes that Trump's suspension of the "reciprocal tariff" indicates that the "White House has surrendered." Video screenshot

"Let us be clear about one thing, it is the White House that has surrendered." Gasparino said, "You know, I don't want to say this because I am a patriot, I am an American, but based on everything I have heard and all my sources, the White House has surrendered."

On April 2nd local time, Trump imposed massive tariffs on most regions globally, causing the global market to collapse for a week. However, a week later, Trump announced on his self-created social media platform "Truth Social" that given more than 75 countries and regions have contacted the US side to negotiate tariff issues and have not retaliated against the US in any way, the US will suspend the high "reciprocal tariff" for these countries by 90 days, but the basic 10% tariff will remain effective.

The Independent pointed out that Trump insisted that this reversal was due to dozens of countries intending to renegotiate trade agreements with the US. However, he admitted shortly afterwards that his change was mainly due to panic in financial markets.

Gasparino believed that Trump retreated when the situation was urgent, due to the bond market and what happened last night, when the 10-year US Treasury yield rose to 5%, the market began to collapse, and the lending market fell into chaos.

The Independent said that entering the 9th, people were increasingly worried that the US Treasury market would crash in the collapse caused by tariffs, leading to concerns about the possibility of the US quickly falling into a debt crisis. Gasparino's words actually mean that Trump abandoned the extreme tariff mainly because the US economy was on the verge of collapse.

"There is no doubt that you cannot separate this decision from what happened last night." Gasparino summarized, "The bond market and loan market are the pillars of the economy. These markets collapsed last night, so we implemented a 90-day freeze period. Let's see if these markets will improve."

After Trump stepped on the brakes for some "reciprocal tariffs," US stocks rebounded significantly on the 9th. By closing, the three major stock indices set records for the largest single-day point increase in history. Among them, the Nasdaq Composite Index created its largest gain since the bursting of the Internet bubble in January 2001, while the S&P 500 index refreshed its best single-day performance since the 2008 financial crisis. US Treasury yields recouped some of their gains but remained high that day.

Analysts worry that the chaos in the US Treasury market may still make some market participants question whether the damage to US assets will be long-term. Many voices believe that although the market reaction was relatively positive, the damage already caused by the "reciprocal tariff" policy in the past few days is irreversible. Deutsche Bank analysts said in a report: "Whether measured by relative economic growth outcomes or the willingness of foreign investors to fund the US external deficit, the damage has been done."

This article is an exclusive contribution from the Guancha Observer and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7491590588325626377/

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