A sudden pause in U.S. tariffs announced by President Donald Trump has drawn fire from economists, lawmakers, and global partners, who say the move reveals the administration’s chaotic and self-serving approach to trade policy. Coming just hours after Trump posted on Truth Social that “this is a great time to buy” stocks, the announcement triggered the largest one-day surge in U.S. equity markets since the 2008 financial crisis and ignited renewed concerns about market instability, authoritarian overreach, and corporate profiteering.
Trump’s decision to suspend what he calls “reciprocal” tariffs for 90 days—excluding those on China—marked a sharp reversal from the aggressive stance taken just days earlier, when his administration imposed sweeping new duties on a wide range of imported goods. The S&P 500 soared by 9.5 percent on the news, the Dow surged more than 2,900 points (7.9 percent), and the tech-heavy Nasdaq jumped 12.2 percent, its highest one-day gain since the dot-com boom. Forbes reported that Tesla CEO Elon Musk, a prominent Trump ally, gained nearly $30 billion in wealth as a result of the stock rally.
While Trump’s supporters celebrated the pause, critics pointed to the whiplash effect on the economy and the apparent favoritism toward billionaires.
“Trump’s ‘will he, won’t he’ tariff chaos is just one more con on working people,” said Melinda St. Louis, director of Public Citizen’s Global Trade Watch. “He claimed that the so-called ‘reciprocal tariffs’ would protect American jobs, but these reckless tariffs were never designed to do that. He just wants to wield threats as a schoolyard bully while giving his billionaire buddies sweetheart deals.”
In the hours before the announcement, the White House gave no public indication that the tariffs were being reconsidered. Trump’s social media post encouraging stock purchases, followed by the sudden policy shift, immediately raised questions about market manipulation and insider access.
“How is this not market manipulation?” asked Rep. Mike Levin (D-Calif.). “If you’re a Trump supporter and you did what he said and you bought, then you did great. On the other hand, if you’re a retiree or a senior or somebody in the middle class over the last few days that didn’t have the tolerance for risk and you decided to sell, you got screwed.”
Rep. Steven Horsford (D-Nev.) confronted Trump’s trade representative Jamieson Greer during a House Ways and Means Committee hearing. “It looks like your boss just pulled the rug out from under you and paused the tariffs—the taxes—on the American people,” Horsford said. “Is this market manipulation? If it’s not market manipulation, what is it? Who’s benefiting? What billionaire just got richer?”
Meanwhile, Sen. Bernie Sanders (I-Vt.) denounced the tariffs as both unconstitutional and economically devastating for working families.
“These tariffs will cost working families thousands of dollars a year, and Trump plans to use that revenue to help pay for a huge tax break for the richest people in America,” Sanders said. “That is what Trump and Republicans in Congress are working on right now: If they have their way on the tariffs and their huge tax bill, most Americans will see their taxes go up, while those on top will get a huge tax break.”
Trump’s tariff policy has faced internal and external criticism not only for its economic impact but for the lack of strategy and coherence. In the week prior to the reversal, even some of Trump’s billionaire allies publicly urged him to reconsider. “This was brilliantly executed,” hedge fund manager Bill Ackman said after the pause was announced. “Textbook, Art of the Deal.”
Sen. Ron Wyden (D-Ore.), the top Democrat on the Senate Finance Committee, accused Trump of creating deliberate economic disruption for political gain. “It took a month to ‘negotiate a deal,’ but it only took one day for Trump to hit the brakes on his nonsensical new tax on autos from Canada and Mexico,” he said. “This endless flip-flopping and bluster is just further proof that Donald Trump has no economic strategy beyond slapping tariffs on our trading partners.”
Sen. Elizabeth Warren (D-Mass.) added, “The Trump tariffs are economic sabotage, and Congress has the power to stop them. Republicans can join Democrats and end this today.”
The policy reversal has also sparked international backlash, particularly from China. After Trump raised tariffs on Chinese imports to 104 percent—and later declared they would rise to 125 percent—Beijing responded by raising its duties on U.S. goods to 84 percent and imposing new restrictions on 18 U.S. companies. China’s Foreign Ministry called the U.S. actions “typical unilateralism, protectionism, and economic bullying.”
“The abuse of tariffs by the United States is tantamount to depriving countries, especially those in the Global South, of their right to development,” said spokesperson Lin Jian.
The European Union had prepared retaliatory measures against U.S. steel and auto tariffs, including levies of up to 25 percent on U.S. goods. The EU did not immediately comment on whether Trump’s pause would affect its planned countermeasures.
Transparency around the administration’s trade negotiations remains minimal. Treasury Secretary Scott Bessent confirmed that the tariff pause applies only to certain nations, while maintaining that “the 10% baseline tariffs will remain in effect.” He added that “the administration’s message is, ‘Do not retaliate, and you will be rewarded.’”
Trade experts and watchdog groups have warned that Trump’s approach could yield deals that prioritize corporate interests over public protections.
“Absent transparency about what is being demanded, we could end up with the worst of all outcomes—a bunch of bad special interest deals, all of the economic damage caused by tariff uncertainty and no trade rebalancing, U.S. manufacturing capacity, or good jobs,” said Lori Wallach, director of Rethink Trade at the American Economic Liberties Project.
Wallach warned that the administration could use its negotiations to “bully countries into gutting their online privacy and Big Tech anti-monopoly policies or undermining their food safety, health, or environmental laws.” She added, “The chaos of these whipsaw tariffs flip-flops is already causing economic chaos and losses, undermining confidence in America and our markets. Cutting deals in secret only adds to that uncertainty and risks corruption.”
Within Congress, Democrats and some Republicans have moved to check Trump’s power to impose unilateral tariffs. Senate Minority Leader Chuck Schumer (D-N.Y.), along with Sen. Wyden, Sen. Warren, and Sen. Rand Paul (R-Ky.), introduced a resolution to end the emergency powers Trump used to enact the tariffs. In the House, Rep. Gregory Meeks (D-N.Y.) is leading a similar effort.
“Republicans can’t keep ducking the vote on these taxes,” Meeks and other House Democrats said. “It is time they take a vote and show their constituents whether or not they support the ‘economic pain’ President Trump is inflicting on American families.”
Despite bipartisan frustration, House Republicans passed a rule this week blocking any effort to repeal Trump’s tariffs for at least 90 days, effectively insulating the administration from immediate legislative accountability.
The controversy arrives as the Securities and Exchange Commission, the agency responsible for investigating market misconduct, comes under new leadership. Trump appointee Paul Atkins, known for his ties to Wall Street, was confirmed as SEC chair on the same day the markets surged.
While suspicions of insider trading persist, observers say the broader issue is the erosion of democratic accountability in U.S. economic policy.
“What Trump is doing is unconstitutional,” Sanders said. “Trump has claimed supposed ‘emergency’ powers to bypass Congress and impose unilateral tariffs on hundreds of countries… This is another step toward authoritarianism.”
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