Instead of Trump himself, to tariffs
Trump shows signs of compromise
The President of the United States is approaching the first hundred days of his presence in the White House, but after the initial rush in the first few weeks, he is now faced with the constraints imposed by reality, especially economic reality. The best-selling book ‘The Art of the Deal,’ co-written by Donald Trump and ghostwriter Tony Schwartz, advises that every negotiation should begin with ambitious, even unacceptable goals, even if you are prepared to concede in some areas. The ultimate goal should be to achieve the maximum possible result.
This style seems to have guided the first three months of Trump’s administration, which began on January 20.
However, in recent weeks, the White House resident has been forced to reconsider some of his positions or to completely or partially retreat in some cases. The latest case is Jerome Powell, the chairman of the Federal Reserve, whom Trump had threatened to remove, but then backed down from his stance, calming the markets that had been shaken by the uncertainty caused by tariffs.
Another example in recent hours is the conciliatory remarks from Treasury Secretary Scott Besent regarding China. He stated that he expects tensions in the trade war with Beijing to decrease in the very near future.
Of course, flexibility and unpredictability are also part of the art of the deal, but recent developments seem to be clearer signs of the need for compromise, at least in some areas.
Powell will not be removed
The President of the United States had repeatedly criticized Jerome Powell on various occasions, particularly for what he perceived as Powell’s failure to lower interest rates quickly enough.
Powell, who has been the chairman of the Federal Reserve since 2018, was initially appointed by Trump himself and then confirmed for a second term by Joe Biden in 2022.
Referring to Jerome Powell, Trump told reporters, ‘I’d like to see him be a little more active in implementing his idea of lowering interest rates.’
Now is a good time for this.
If he doesn’t do this, is it the end? No, it is not.
The potential dismissal of Powell, an event that has never happened to a Federal Reserve chairman during his tenure, could have added more tensions to a situation already under pressure due to Trump’s trade policies, apart from the suspension of reciprocal tariffs announced on April 2.
US-China: Should they cooperate?
To further alleviate concerns on Wall Street and other markets, the statements of US Treasury Secretary Scott Besent, who is increasingly taking on the role of moderating Trump’s extremes, were influential.
According to CNBC, in a closed-door meeting, this Republican government official announced that he expects a reduction in tensions in the trade war with China.
Besent said no one thinks the current situation with the existing tariffs is sustainable. The Treasury Secretary urged China to stop relying on exports and increase consumption, stating that this would help reduce trade tensions. Besent added, ‘If they want to restore balance, let’s do it together.’
However, the opening toward China, which was later initiated by Trump himself, was neutralized by Beijing.
Chinese Foreign Ministry spokesperson Gu Jiakun, in response to a question about a Wall Street Journal report that the White House is considering reducing customs tariffs on China from the current 145% to 50-65%, attacked the unilateral and aggressive stance of the United States. He stated, ‘If the United States truly seeks to solve problems through dialogue and negotiation, it should abandon its maximum pressure approach, stop threats and coercion, and begin dialogue with China based on equality and mutual respect.’
Compromising
Besent’s approach, which the British newspaper The Telegraph described as the man who has temporarily saved the global economy, seems to reflect a type of approach to China that has been adopted during Biden’s era as well: competition when possible, cooperation when necessary.
Overall, despite his tariff war, the situation three months after Trump’s entry into the White House shows that he continues to be ambitious, using aggressive rhetoric and strong slogans without fear of falling into contradictions, and then facing reality and adjusting his approach through his cabinet or under its pressure.
As CNN explains, the President hoped that the first 100 days of his second term would be accompanied by a series of quick agreements, similar to what is described in the foundational text of Trumpism, Trump’s book on negotiation.
But the New York businessman had to soften his tone in the trade war with China, suspend reciprocal tariffs, and ultimately lost his patience in facing the war in Ukraine, after months of promising that the war would end in 24 hours. According to analysis by Elizabeth Buchwald, senior economic reporter, and Kevin Liptak from CNN, negotiations as President become more complex because what’s at stake is not skyscrapers and casinos, but entire economies, the credibility of leaders, and national sovereignty.
The failures and retreats of the Trump administration reflect the limitations of a political agenda that has so far been built more on slogans than practical realities.
At the same time, these issues show that the system of checks and balances, which forms the basis of the United States’ institutional system, continues to function relatively effectively.
The system of checks and balances refers to a set of legal and political principles and structures designed in the US government system to prevent the concentration of power in one branch or institution.
In this system, each of the three branches – executive, legislative, and judicial – has oversight and control over each other to prevent abuse of power and violation of democratic principles.
For a president with decision-making ambitions, this is a heavy defeat that cannot hide the attempt to present some of these retreats as evidence of his strategic success.
However, it seems that Trump does not decide to abandon his contradictory behavior.
Probably, the tone of the war against the deep state and the country’s enemies will ultimately feed off the contradictions of practical policies, a development that, on the other hand, aligns with a personality whose political success owes to his ability to convey large amounts of falsehoods to voters.
