For weeks, President Donald Trump has governed with an aggressive, full-speed-ahead approach, implementing policies that have sparked both support and concern—even among his own party.
However, recent developments suggest that political and economic realities are prompting some recalibration.
On Thursday, Trump announced significant adjustments on two major fronts: trade tariffs and federal workforce reductions. These moves indicate a willingness to respond to political pressures and economic signals, even as he remains committed to his broader agenda.
Trump had initially pushed forward with steep tariffs—25% on imports from Canada and Mexico and 10% on goods from China—despite warnings from economists and business leaders. However, following stock market volatility and mounting political concerns, he has now announced that all products covered under the US-Mexico-Canada Agreement (USMCA) will be exempt. This follows an earlier exemption for the auto industry, signaling a more flexible approach than his previous hardline stance.
The move came just days after Trump assured the public that tariffs were non-negotiable. However, the economic landscape appears to have influenced his decision. As stock prices fluctuated and businesses raised concerns about rising costs, the administration opted for a temporary reprieve, delaying most tariffs until April 2.
While Trump has framed this as a strategic pause rather than a reversal, it highlights his sensitivity to market reactions and the economic impact of his policies. Investors have been navigating uncertainty as the administration weighs economic protectionism against potential inflationary consequences.
In another significant shift, Trump has also adjusted his approach to government workforce reductions. Initially, entrepreneur Elon Musk spearheaded a broad and aggressive effort to cut federal jobs, which led to growing concern from lawmakers and the public. Some of these cuts affected critical positions, including military veterans and nuclear security personnel, sparking backlash.
On Thursday, Trump signaled a more measured strategy.
“We say the ‘scalpel’ rather than the ‘hatchet,'” he wrote on Truth Social.
Trump indicated that federal downsizing will now be handled with more precision. Reports suggest that Trump met with Musk and key Cabinet officials to clarify that final decisions on cuts will rest with department heads, not Musk.
This adjustment likely reflects both legal and political considerations. Lawsuits have challenged Musk’s level of influence in government restructuring, while polling suggests that the public is wary of sweeping federal job cuts. By shifting the focus to his Cabinet, Trump appears to be addressing these concerns while maintaining his goal of making government more efficient.
The Washington Post, the Financial Times, and the New York Times contributed to this report.
