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WASHINGTON — “Liberation Day” just gave way to Capitulation Day.
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President Donald Trump pulled back Wednesday on a series of harsh tariffs targeting friends and foes alike in an audacious bid to remake the global economic order.
Trump's early afternoon announcement followed a harrowing week in which Republican lawmakers and confidants privately warned him that the tariffs could wreck the economy. His own aides had quietly raised alarms about the financial markets before he suspended a tariff regime that he had unveiled with a flourish just one week earlier in a Rose Garden ceremony.
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The stock market rose immediately after the about-face, ending days of losses that have forced older Americans who've been sinking their savings into 401(k)s to rethink their retirement plans.
Ahead of Trump's announcement, some of his advisers had been in a near panic about the bond markets, according to a senior administration official. Interest rates on 10-year Treasury bonds had been rising, contrary to what normally happens when stock prices fall and investors seek safety in treasuries. The unusual dynamic meant that at the same time the tariffs could push up prices, people would be paying more to buy homes or pay off credit card debt because of higher interest rates. Businesses looking to expand would pay more for new loans.
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Two of Trump's most senior advisers, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, presented a united front Wednesday, urging him to suspend the tariffs in light of the bond market, the administration official said.
In a social media post, Trump announced a 90-day pause that he said he’ll use to negotiate deals with dozens of countries that have expressed openness to revising trade terms that he contends exploit American businesses and workers. One exception is China. Trump upped the tariff on the country’s biggest geopolitical rival to 125%, part of a tit-for-tat escalation in an evolving trade war.
Trump reversed course one week after he appeared in the Rose Garden and unveiled his plan to bring jobs back to the United States. Displaying a chart showing the new, elevated tariffs that countries would face, Trump proclaimed, “My fellow Americans, this is Liberation Day.”
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President Donald Trump wants to bring back American manufacturing in ways that would reshape the United States economy to look more like China’s. The campaign, which has led to a rapidly escalating trade war with China, has given ample social media fodder to Chinese and American observers alike.
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Announcing a series of sweeping tariffs in a move dubbed “Liberation Day,” Trump said last week that it will lead factories to move production back to American shores, boosting the U.S. economy after “foreign leaders have stolen our jobs, foreign cheaters have ransacked our factories, and foreign scavengers have torn apart our once beautiful American dream.”
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In a Truth Social post Wednesday, Trump announced that he is raising tariffs on goods imported from China to 125%, up from the 104% that took effect the same day, due to “the lack of respect that China has shown to the World’s Markets.” Higher targeted tariffs on other countries have been paused for 90 days, although the 10% baseline tariff will remain in place for all countries.
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Meme-makers and Chinese government officials have in recent days begun pointing out the irony of Trump’s tariff-driven manufacturing pivot through AI-generated satire and political cartoons that have percolated online, with many American users boosting the jokes.
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Elon Musk stood next to President Donald Trump in the Oval Office on Friday, but the physical proximity belied a growing philosophical divide between two of the world's most powerful men, resulting in the tech mogul's abrupt announcement that he is departing Washington — without having achieved his goal of decimating the federal government.
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Trump took a more charitable view of Musk's tenure during a sprawling news conference in which he also declined to rule out pardoning Sean "Diddy" Combs, who is on trial on charges of sex trafficking and other alleged crimes; said he dislikes "the concept" of former first lady Jill Biden being forced to testify before Congress about her husband's mental fitness; and predicted again that Iran is on the cusp of making a deal that would suspend its pursuit of nuclear weapons.
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In a battle of plutocrats against populists, Bannon, a longtime advocate for reducing the size and scope of government, found Musk's methods and policy preferences to be sharply at odds with those of the MAGA movement. So, ultimately, did Musk, who broke with Trump repeatedly on agenda items as narrow as limiting visas for foreign workers and as broad as Trump's signature "big beautiful" budget bill — which Musk belittled for threatening to add trillions of dollars to the national debt.
“I was, like, disappointed to see the massive spending bill, frankly, which increases the budget deficit, not just decrease it, and undermines the work that the DOGE team is doing," Musk said in an interview with CBS' "Sunday Morning," which will air this weekend.
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"I love the gold on the ceiling," he said.
Musk has argued that inertia throttled his efforts to reduce government spending — a conclusion that raises questions about whether he was naive about the challenge of the mission he undertook.
“The federal bureaucracy situation is much worse than I realized,” he told The Washington Post this week. “I thought there were problems, but it sure is an uphill battle trying to improve things in D.C., to say the least.”
On Friday, he drew an implicit parallel between American government and the Nazi regime that committed a genocide, invoking the "banality of evil" that Hannah Arendt used to describe the atrocities in Germany.
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Jan Beutel was half-watching a live stream of Kleines Nesthorn, a mountain peak in the Swiss Alps, when he realized its cacophony of creaks and rumbles was getting louder. He dropped his work, turned up the sound and found himself unable to look away.
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“The whole screen exploded,” he said.
Beutel, a computer engineer specializing in mountain monitoring, had just witnessed a glacier collapse. On May 28, an avalanche of millions of tons of ice and rock barreled down the slope, burying Blatten, a centuries-old village nestled in the valley below.
Local authorities had already evacuated the village after parts of the mountain had crumbled onto the glacier; a 64-year old man believed to have stayed remains missing.
But no one expected an event of this magnitude.
Successive rock avalanches onto the glacier increased the pressure on the ice, causing it to melt faster and the glacier to accelerate, eventually destabilizing it and pushing it from its bed. The collapse was sudden, violent and catastrophic. “This one just left no moment to catch a breath,” Beutel said.
The underlying causes will take time to unravel. A collapse of this magnitude would have been set in motion by geological factors going back decades at least, said Matthias Huss, a glaciologist at the Swiss university ETH Zurich.
But it’s “likely climate change is involved,” he said, as warming temperatures melt the ice that holds mountains together. It’s a problem affecting mountains across the planet.
People have long been fascinated with mountains for their dramatic beauty. Some make their homes beneath them — around 1 billion live in mountain communities — others are drawn by adventure, the challenge of conquering peaks.
These majestic landscapes have always been dangerous, but as the world warms, they are becoming much more unpredictable and much deadlier.
“We do not fully understand the hazard at the moment, nor how the dangers are changing with climate change,” said David Petley, an Earth scientist at the University of Hull in England.
Jan Beutel was half-watching a live stream of Kleines Nesthorn, a mountain peak in the Swiss Alps, when he realized its cacophony of creaks and rumbles was getting louder. He dropped his work, turned up the sound and found himself unable to look away.
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“The whole screen exploded,” he said.
Beutel, a computer engineer specializing in mountain monitoring, had just witnessed a glacier collapse. On May 28, an avalanche of millions of tons of ice and rock barreled down the slope, burying Blatten, a centuries-old village nestled in the valley below.
Local authorities had already evacuated the village after parts of the mountain had crumbled onto the glacier; a 64-year old man believed to have stayed remains missing.
But no one expected an event of this magnitude.
Successive rock avalanches onto the glacier increased the pressure on the ice, causing it to melt faster and the glacier to accelerate, eventually destabilizing it and pushing it from its bed. The collapse was sudden, violent and catastrophic. “This one just left no moment to catch a breath,” Beutel said.
The underlying causes will take time to unravel. A collapse of this magnitude would have been set in motion by geological factors going back decades at least, said Matthias Huss, a glaciologist at the Swiss university ETH Zurich.
But it’s “likely climate change is involved,” he said, as warming temperatures melt the ice that holds mountains together. It’s a problem affecting mountains across the planet.
People have long been fascinated with mountains for their dramatic beauty. Some make their homes beneath them — around 1 billion live in mountain communities — others are drawn by adventure, the challenge of conquering peaks.
These majestic landscapes have always been dangerous, but as the world warms, they are becoming much more unpredictable and much deadlier.
“We do not fully understand the hazard at the moment, nor how the dangers are changing with climate change,” said David Petley, an Earth scientist at the University of Hull in England.
Jan Beutel was half-watching a live stream of Kleines Nesthorn, a mountain peak in the Swiss Alps, when he realized its cacophony of creaks and rumbles was getting louder. He dropped his work, turned up the sound and found himself unable to look away.
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“The whole screen exploded,” he said.
Beutel, a computer engineer specializing in mountain monitoring, had just witnessed a glacier collapse. On May 28, an avalanche of millions of tons of ice and rock barreled down the slope, burying Blatten, a centuries-old village nestled in the valley below.
Local authorities had already evacuated the village after parts of the mountain had crumbled onto the glacier; a 64-year old man believed to have stayed remains missing.
But no one expected an event of this magnitude.
Successive rock avalanches onto the glacier increased the pressure on the ice, causing it to melt faster and the glacier to accelerate, eventually destabilizing it and pushing it from its bed. The collapse was sudden, violent and catastrophic. “This one just left no moment to catch a breath,” Beutel said.
The underlying causes will take time to unravel. A collapse of this magnitude would have been set in motion by geological factors going back decades at least, said Matthias Huss, a glaciologist at the Swiss university ETH Zurich.
But it’s “likely climate change is involved,” he said, as warming temperatures melt the ice that holds mountains together. It’s a problem affecting mountains across the planet.
People have long been fascinated with mountains for their dramatic beauty. Some make their homes beneath them — around 1 billion live in mountain communities — others are drawn by adventure, the challenge of conquering peaks.
These majestic landscapes have always been dangerous, but as the world warms, they are becoming much more unpredictable and much deadlier.
“We do not fully understand the hazard at the moment, nor how the dangers are changing with climate change,” said David Petley, an Earth scientist at the University of Hull in England.