Trump Catches 'Three Rabbits' at Once…"Textbook 'Art of the Deal'" [Lee Sang-eun's Washington Now]

U.S. President Donald Trump has abruptly postponed reciprocal tariff measures on the 9th (local time), allowing the world to breathe a sigh of relief from tariff fears.

This announcement, made just 13 hours after the tariffs were initially implemented, was said by U.S. Treasury Secretary Scott Besant to have been planned from the start. Although the timing and situation were not meticulously planned, there was a strategy to overturn the situation quickly after observing the market's reaction.

In fact, through this, President Trump secured a negotiating leverage with countries around the world, isolated China, and introduced a 10% basic tariff, catching three rabbits at once. Bill Ackman, founder of Pershing Square Capital Management, who had previously regretted supporting President Trump, saying it was "my mistake," praised him, saying, "Trump did a great job," and called it a "textbook 'Art of the Deal.'"

"Instinctive Decision" vs "Planned Action"

President Trump had initially said he was not concerned about the market's reaction and was seen enjoying golf in Florida over the weekend. He ordered, "This measure is an economic revolution and will win," and "Hold on."

However, after the stock market plummeted and the U.S. bond market wavered, he took a 180-degree different stance. He told reporters that day that he had been considering postponing the tariffs "over the past few days," and "the decision was probably made early this morning." He suggested that seeing JPMorgan Chase CEO Jamie Dimon mention on Fox Business that tariffs could trigger a recession might have influenced his decision. He also said the decision was "instinctive."

The explanation from those around him, such as Secretary Besant, was different. There was some planning involved. The Wall Street Journal (WSJ) evaluated that after the reciprocal tariff announcement last Wednesday, he collected opinions through various channels and observed the market flow before suddenly playing his card, showing "President Trump's typical decision-making pattern."

President Trump added that there was no legal review of the wording of the announcement and that he referred to the opinions of Treasury Secretary Besant and Commerce Secretary Howard Lutnick. He said, "I don't want to hurt countries that don't need to be hurt," and "All those countries want to negotiate."

Isolating China…Uncertain Negotiation Prospects

President Trump seems to have anticipated that China would not easily come to the negotiating table. Adding a 34% reciprocal tariff to the existing 20% additional tariff and calling for a 50% additional tariff on retaliatory measures quickly pushed the tariff war with China to the extreme. And on this day, he added a 21% tariff, raising the tariff rate on Chinese products to 125%.

White House spokeswoman Caroline Levitt said, "There are claims that tariffs will bring the world closer to China, but we have seen the opposite effect," adding, "The whole world is contacting the U.S., not China." It was successful in isolating only China and bringing the rest of the world to the negotiating table.

President Trump is repeatedly sending a message that he is looking forward to negotiations with China. He said, "Chinese President Xi Jinping is a proud man," and "China wants to make a deal but just doesn't know how." He added, "I will make a deal with China and with all countries."

This is similar to the strategy he took during the first Trump administration. At that time, President Trump seemed to be planning a global tariff war, but the ultimate target was China. He continued the U.S.-China conflict structure to reduce China's influence, using both carrots and sticks. There is a possibility that a similar trend will continue this time as well.

However, there is considerable criticism that the 'Art of the Deal' he has shown to the world comes at too high a cost. During the reciprocal tariff announcement process, President Trump downgraded trust with allies to something that can be 'easily overturned,' and by actually applying high tariffs with weak grounds, he increased uncertainty.

The Trump administration aims to promote manufacturing, but with tariff rates fluctuating too much, even companies considering investing in the U.S. are unable to make investment decisions. Companies complain that it is difficult to identify relative investment opportunities and risk factors because the United States-Mexico-Canada Agreement (USMCA) is proceeding separately from the reciprocal tariff discussions.

New York Times columnist Thomas Friedman criticized that President Trump's postponement measure sent a message to China and the world that "I couldn't withstand the pressure," and said if it were a book, it should have been titled 'The Art of the Scream.' He also pointed out that "trust disappeared like smoke," and the chaos in the financial markets and the flip-flop decisions came at a considerable cost.

Washington Correspondent Lee Sang-eun selee@hankyung.com