**Washington, D.C.:** President Trump has reduced tariffs on Chinese imports and halted plans to fire Federal Reserve Chair Jerome Powell amid economic slowdown concerns and international conflicts, while facing internal party divisions over fiscal policy and fragile peace efforts abroad.
President Donald Trump is facing mounting challenges as he adjusts key economic and political stances amid growing concerns over the US economy and ongoing international conflicts. Over recent weeks, a series of developments indicate that Trump is stepping back from some of his more hardline positions, particularly regarding tariffs on China and leadership decisions at the Federal Reserve.
A significant shift came when Trump announced a reduction in the steep 145 per cent tariff rate he had previously imposed on Chinese imports, marking a de-escalation in the ongoing trade war between the two economic powers. This move followed warnings from major American retailers, including Walmart, Target, and Home Depot, that the tariffs were threatening supply chain stability, with potential shortages on store shelves looming within weeks unless policies changed promptly. This de-escalation was met with relief in the stock markets, both in the United States and across Asia.
In parallel, Trump publicly reversed his previous threat to dismiss Jerome Powell, the Chair of the Federal Reserve. Earlier comments calling for Powell’s removal, which coincided with sharp declines in US stock markets, were retracted. Trump subsequently clarified that he had “no intention” of firing Powell, a statement that helped stabilise market sentiment upon release. Despite this, the tension between the President and the central bank persists, with Trump having criticised Powell’s reluctance to lower interest rates, an issue directly linked to broader economic concerns.
Economic forecasts from the International Monetary Fund have added to the pressure on the administration, revising down the projected US economic growth rate for the year from 2.7 per cent to 1.8 per cent. Additionally, JP Morgan has recently estimated a 60 per cent chance that the US could enter a recession, a scenario that experts warn could heavily impact Trump politically, given that economic performance was a key factor in his initial election victory.
On the international front, progress appears slow and uncertain. Despite early promises, the United States, under Trump, has struggled to make significant inroads toward resolving the ongoing war in Ukraine. US Secretary of State Marco Rubio did not attend recent peace negotiations in London and indicated that the US might disengage from the process, sentiments reflected by Trump himself. Although the administration helped secure a two-month ceasefire in the Gaza conflict, Israeli airstrikes have since resumed, highlighting the fragile nature of ongoing peace efforts.
Meanwhile, concerns over the conduct of senior officials have surfaced. US Defence Secretary Pete Hegseth disclosed sensitive military details regarding operations in Yemen in unsecured communication channels with family and a journalist, yet no immediate disciplinary action from the administration has been reported.
Within the domestic political arena, Trump is facing internal hurdles related to the Republican Party’s fiscal agenda. The party is pushing for tax cuts amounting to $4.5 trillion (£3.4 trillion), but ideological divisions persist. Fiscal conservatives express worry about expanding the national deficit, whereas moderates are concerned about potential cuts to Social Security benefits. Trump’s ability to negotiate and secure approval for this budget will be a critical test of his administration’s legislative effectiveness.
Despite these pressures, the White House continues to promote a narrative of strategic resilience. Trump’s style—characterised by abrupt reversals and rhetorical shifts—has been described by his administration as a deliberate tactic to navigate complex political and economic landscapes. The President himself has referred to these manoeuvres using terms like “the weave,” framing his flexibility as part of an overarching plan rather than as retreat.
With global economic implications hanging in the balance, the Trump administration’s evolving policy approaches in trade, monetary policy, and foreign affairs are poised to shape both the near-term economic outlook and the political dynamics within the United States. The developments noted suggest a period of adjustment as the President balances internal party demands, market reactions, and international pressures.
Source: Noah Wire Services
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