White House Denies Tariff Pause as Stocks Swing Wildly

The White House has labeled reports of a 90-day tariff pause as “fake news,” quashing a brief stock market rally sparked by CNBC claims that Trump economic advisor Kevin Hassett floated the idea for all countries except China. The swift denial, issued Monday, underscores the administration’s resolve to press forward with its trade war despite plunging indexes and growing recession fears, leaving investors reeling from a day of whiplash trading.

Stocks soared over 5% in minutes after CNBC aired Hassett’s alleged comments, hinting at relief from tariffs. The S&P 500, down 17.4% from its February peak, nearly erased a bear market scare before crashing back.

The White House rebuttal came via a Trump-linked social media account, calling the report “wrong.” Officials later told CNBC they knew of no such pause, reinforcing Trump’s hardline stance.

Trump’s tariffs—25% on Canada and Mexico, 34% on China—kicked in last week, with a 50% China hike looming. The policy has shed over $5 trillion from U.S. markets since February, per analysts.

Commerce Secretary Howard Lutnick has insisted tariffs won’t budge, predicting they’ll hold “for days and weeks.” He argues they’ll reset global trade, despite Wall Street’s punishing response.

The Dow dropped 800 points Monday, while the Nasdaq, already in a bear market, fell 5%. The volatility reflects investor panic over tariffs’ economic toll, from higher prices to job losses.

Trump shrugged off the chaos, telling reporters Sunday the market’s pain is a needed “medicine.” He’s touted tariffs as a revenue boon, though experts say consumers bear the brunt.

Businesses like Jaguar Land Rover have halted U.S. shipments to adapt to the new costs. Klarna and StubHub also delayed IPOs, citing the tariff-driven market slump.

Some in Trump’s circle, like Peter Navarro, promise tax cuts to offset the damage. Skeptics doubt this will stem the bleeding, with recession talk gaining steam.

China’s 34% retaliatory tariffs and the EU’s planned countermeasures have deepened the global rout. European stocks shed nearly 6% Monday, mirroring U.S. losses.

Democrats have seized on the turmoil, blasting Trump’s “tariff chaos” as reckless. Republicans, though quieter, are reportedly uneasy about the economic fallout.

With no pause in sight, markets brace for more turbulence as Trump doubles down. The White House’s denial has dashed hopes of a reprieve, leaving the economy on edge.