Why did Trump "surrender"? When this real estate tycoon, who started with debt, saw the bond market collapse and bank executives said the economy was failing

Amid market turmoil, political pressure, and warnings from Wall Street, Trump chose to compromise.

On April 9, just a week after the implementation of aggressive trade policies, U.S. President Trump unexpectedly made a significant concession, announcing a 90-day suspension of tariff policies against most trading partners, providing the market with "breathing space" and leaving room for negotiations.

According to CCTV News, Trump announced measures to impose "reciprocal tariffs" on trading partners on April 2, local time. This was considered the most far-reaching and impactful tariff policy of the current U.S. administration. According to Xinhua News Agency, on Monday of this week, Trump also stated that he was not considering temporarily suspending the so-called "reciprocal tariff" plan against multiple countries but hinted at a willingness to negotiate.

Just one day later, Trump changed his stance.

According to the Financial Times, a clear sign of Trump's 180-degree turnaround was the waning influence of trade hawk Peter Navarro, and the decision to suspend was ultimately made early Wednesday local time, with turmoil in the bond market and warnings from JPMorgan CEO Jamie Dimon about recession risks becoming key turning points.

Navarro's Influence Wanes, Trump's Position Wavers

Until last Sunday, despite the U.S. stock market experiencing two rounds of severe sell-offs, Trump insisted on maintaining a tough stance. He spent most of the weekend in Florida playing golf and set high barriers for dialogue with concerned trading partners. At that time, he dismissed market volatility, calling it merely a temporary adjustment.

However, pressures from various parties began to emerge. Republicans on Capitol Hill, who usually aligned with Trump, started to voice dissent, while Democrats were ecstatic over the political gift Trump had unwittingly offered. Influential supporters in the investment community and American business circles increasingly resisted Trump's extreme protectionist policies.

On Monday, Trump began to adjust his strategy. He initiated trade negotiations with Japan and South Korea and appointed Treasury Secretary Steven Mnuchin to lead discussions with trading partners. Mnuchin is viewed on Wall Street as one of the most credible officials in the president's team.

Notably, the influence of radical trade protectionist Navarro has clearly diminished. Just as Mnuchin indicated that negotiations were underway, Navarro published a commentary in the media, warning trading partners that Trump was not negotiating.

When Trump considered suspending tariff policies, he specifically mentioned discussions with Mnuchin and Kudlow but made no mention of Navarro. This subtle change further hinted at Navarro's declining status within the decision-making circle.

Key Turning Point for Trump's Concession

The key factor that prompted Trump to make concessions was the significant volatility in the U.S. Treasury market this week.

Recently, the U.S. Treasury market has seen consecutive declines, with the yield on the 10-year Treasury note soaring nearly 40 basis points in two days, briefly touching 4.5%, while the yield on the 30-year Treasury note once exceeded 5%, signaling serious systemic risk and prompting warnings from economic experts, including former Treasury Secretary Larry Summers, about the potential for a financial crisis The Financial Times of the UK quoted a person close to the White House as saying: "Trump can accept losses on Wall Street, but he does not want the entire building to collapse."

For Trump, a businessman whose career has largely relied on borrowing to develop real estate projects, the warning signals from the U.S. bond market are particularly sensitive.

"The bond market is very tricky, and I've been watching it... People are getting a bit uneasy," Trump said while explaining his shift.

JP Morgan CEO Jamie Dimon's warning further shook Trump's position.

Trump specifically emphasized that he was influenced by Dimon's interview on Fox Business Channel. On this channel that Trump often watches, Dimon warned that the U.S. economy is likely to fall into recession.

"I am cautious right now, but if we can't make some substantial progress, things could get worse," Dimon stated on the show.

These remarks clearly caught Trump's high attention. He publicly acknowledged: "People are getting a bit worried... I think the market reaction is a bit excessive. Everyone is getting a bit nervous." Ultimately, he stated that the decision to suspend tariffs was a "heartfelt consideration."

Although the market welcomed Trump's suspension of tariffs, business groups warned that the turmoil in trade policy is not over.

Jake Colvin, president of the National Foreign Trade Council, a Washington lobbying organization, stated: "While this temporary pause may alleviate immediate pain, it does not reduce the uncertainty that is paralyzing companies' trade, procurement, and investment calculations."