More Personal Views about “Trump Backs Down”

Ironically, Trump's "concession" this time might have more severe short-term impacts on the US economy.

American importers may now be less likely to import until the executive order for tariff reduction is implemented (to avoid paying more now and less later).

The enthusiasm for Americans to find alternatives or establish production bases within the US will decrease: "If Trump says the situation will improve, why bother putting in the effort?"

It will affect trade negotiations between the US and other countries. Other countries might think: "China firmly countered, and Trump backed down. Even if we don't dare to counter, can't we at least drag things out?"

"Strategic ambiguity" only works when others believe there's a strategy behind it. This looks like Trump's impromptu clown show on the global stage. Trump is negotiating with Trump and opposing Trump at any time, making the business environment for US companies completely unpredictable and chaotic.

Even Elon Musk publicly stated: "I have said many times publicly that I think lowering tariffs in general is a good idea and would be good for prosperity... but this decision is fundamentally up to the President... I will continue to advocate for lowering tariffs rather than raising them." (via CNN)

Musk: "Starting next month, you guys will do the work on DOGE, and I will focus on Tesla."

Trump's half-hearted, exception-ridden approach to tariffs leaves US businesses completely bewildered. US businesses need predictability. If he wants to impose tariffs on these goods, fine, just say a number and stick to it so US businesses can calculate all costs and decide whether to start ordering or give up. At least not this flip-flopping every week.

As for the stock market, what's the use of Trump's statements making it rise for a day? The fundamental data of the US economy is still set to decline in the coming period.