Washington DC [US], April 7 : The White House on Monday dismissed as "fake news" reports that US President Donald Trump is considering a 90-day pause on tariffs.
The reports and rumours claimed that Trump is considering a 90-day pause on reciprocal tariffs announced on April 2 for all countries except China.
"Wrong. Fake News," the White House said on X, sharing a post that Trump is reportedly expecting to do a pause.
https://x.com/RapidResponse47/status/1909254710361575428
White House Press Secretary Karoline Leavitt shared the post.
Earlier in the day, US stocks surged after sections of media reported that Kevin Hassett, Director, the National Economic Council of US said that President Trump was considering a 90-day pause on tariffs for all countries except China.
However, the rally was short-lived. After Leavitt denied the reports, the markets quickly reversed course and began to slide again.
The Dow Jones Industrial Average suffered losses exceeding 1,500 points for the first time in history, including a 2,231-point drop on Friday. The S&P 500 shed 6 per cent on Friday marking its worst single-day performance since Covid-19 fall in March 2020. The index has now lost 10 per cent over two sessions.
The Nasdaq Composite has fallen 22 per cent from its record high. The tech-heavy index slid nearly 6 per cent on both Thursday and Friday, reflecting widespread investor unease.
Meanwhile, President Trump has threatened new 50 per cent tariff on China if Beijing does not remove retaliatory tariffs it has imposed on US imports. China announced last week a retaliatory tariff of 34 per cent on US goods, to come into effect from Thursday, April 10.
The news gave a new boost to Dow Jones which has recovered from its lows.
Earlier, the social media storm over the "pause" began when a user on X posted that Kevin Hassett, director of the National Economic Council, said Trump is considering a 90-day pause on all countries except China. The post caused major waves on the stock market.
According to US media, the report appeared to be an incorrect interpretation of a Hassett interview on Fox News earlier that day.
Trump, meanwhile, pushed back on criticism over his tariffs earlier Monday calling on Americans to be patient and not be a "panican."
He urged people not to be "weak, stupid" and said they should be "courageous and patient" and the result "will be greatness".
Trump made the remarks on his social media platform Truth Social, minutes before US stock markets opened.
"The United States has a chance to do something that should have been done DECADES AGO. Don't be Weak! Don't be Stupid! Don't be a PANICAN (A new party based on Weak and Stupid people!). Be Strong, Courageous, and Patient, and GREATNESS will be the result!" he said.