The White House quickly shut down a false report claiming President Trump would pause tariffs for 90 days, triggering a market rollercoaster and renewing debates over the impact of economic misinformation.
At a Glance
- A false report about a 90-day tariff pause caused sharp stock market swings
- The White House labeled the report “fake news” and denied any such policy
- The rumor stemmed from an unaffiliated social media account
- Kevin Hassett was misquoted in media coverage, adding to the confusion
- President Trump remains committed to his aggressive trade agenda
White House Quickly Debunks Tariff Rumors
Chaos swept financial markets after a misleading social media post claimed President Trump would pause tariffs for 90 days. The rumor, originating from a pseudonymous account named Walter Bloomberg—not associated with Bloomberg News—briefly made its way into mainstream reporting by outlets like CNBC and Reuters before being retracted.
The White House responded within 20 minutes, calling the report “fake news” and reiterating its commitment to ongoing tariff enforcement. According to the New York Times, National Economic Council Director Kevin Hassett had been misquoted, contributing to the misunderstanding. Hassett later clarified, “I think the president is going to decide what the president is going to decide.”
Market Volatility Underscores Risks of Misinformation
The rumor’s impact was immediate: the Dow Jones swung wildly, narrowing a 1,700-point drop to an 800-point gain before plunging again once the correction hit the wires. Analysts say this incident illustrates the precariousness of investor sentiment in an era where unverified posts can drive massive financial consequences.
As Forbes reported, multiple major platforms initially amplified the story before verifying its accuracy. The White House issued multiple statements to clarify its position, including from official social accounts, condemning the misinformation and reaffirming that no policy changes were in motion.
Watch CNBC’s breakdown of the tariff rumor and market fallout.
Trump Defends Tariff Strategy Amid Criticism
Despite ongoing economic uncertainty, President Trump doubled down on his aggressive trade stance, which he has framed as essential for restoring American manufacturing and countering foreign exploitation, particularly by China. In a statement reported by Western Journal, Trump declared, “This is an economic revolution, and we will win. HANG TOUGH, it won’t be easy, but the end result will be historic.”
Critics such as Bill Ackman and Jamie Dimon argue the strategy risks recession and undermines global confidence in U.S. economic leadership. Nevertheless, the administration maintains that the tariffs are a long-overdue response to decades of uneven trade relations.
Economic Strategy Remains Unchanged
Trump’s trade team continues to pursue what it calls a “reset” of global economic norms, with particular emphasis on breaking what it sees as China’s monopolistic hold on supply chains and labor markets. Falling oil prices and other selective economic data are being touted as signs of success, despite warnings from Wall Street about broader economic instability.
As AP News detailed, the administration is betting that short-term pain will translate into long-term gains, even as market watchers remain skittish in the wake of such misinformation-fueled volatility.
Whether this firm stance yields the intended economic realignment or further destabilizes markets remains to be seen. But one thing is clear: in the Trump administration’s view, nothing about the current tariff strategy is pausing anytime soon.
