Trump's pause of tariffs: What made him blink?

That US reciprocal tariffs were always a tool of leverage over its trade partners has gained traction as a guess. But if the response of asset markets was behind it, bond yields hold a clue

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It's rare for choppy seas to make people on dry land giddy, but when earthly trade is subject to unearthly forces that originate from a mercurial White House, anything can happen. On 9 April, US President Donald Trump's 'reciprocal tariffs' had just kicked in hours earlier when he backed down. He announced a 90-day pause-with only his 10% baseline tariff to apply-of that harsh policy aimed at trade partners that run a goods surplus with the US; all barring China, that is, on which he hiked that barrier as part of an escalatory bilateral tariff war. So, what made Trump blink? Or did he? His post online implied it was part of a plan. While Beijing had opted to fight back, others had sought relief talks. Or so he reasoned-if that's the right word. This has lent some credence to a hunch held by many: That inflicting tariff trauma was just a tool of leverage to make the world reset trade relations in its favour. Apart from its reciprocal-tariff formula, the fact that others did get rattled adds weight to this argument.