Donald Trump meets his match: The markets

President softens his economic and trade stances in the midst of market turmoil

- Meridith Mcgraw & Brian Schwartz

President Trump has met his biggest opponent—and it's the stock market. Since returning to Washington three months ago, Trump has toppled federal agencies, consolidated executive power, challenged global alliances and reconfigured America's economic relationships around the globe. His moves have been met with protests, court challenges, dipping poll numbers and political opposition.

Yet so far, the only force that has reliably prompted him to back down is Wall Street.

In recent weeks, Trump has softened his economic and trade stances following periods of market turmoil. Early this month, he imposed a 90-day pause on many of the tariffs he had put in place just days earlier, as the stock market cratered and a selloff of U.S. bonds rattled investors. This week, he softened his tone on China after ratcheting up tariffs on imports from the country to 145%. And he ruled out—for now—attempting to fire Federal Reserve Chair Jerome Powell after his public musings about terminating him triggered another market plunge.

Both the president and White House officials argue that the sharp U-turns are all part of a long-term plan to force allies and adversaries alike to strike trade deals with the U.S. And they stress that Trump remains determined to follow through on his pledge to reset global trade.