A baseless rumor claiming that the US President Donald Trump would pause the newly imposed tariffs for 90 days, briefly sent volatile U.S. stock markets soaring before the White House clarified that the announcement was “fake news.”
The misinformation originated from a verified account on X known for posting finance-related headlines. While the platform’s blue checkmark once symbolized credibility, that changed after Elon Musk’s acquisition of X, which now allows anyone to retain verification through a paid premium subscription.
The misleading headline was based on an interview with Kevin Hassett, Director of the National Economic Council, who was asked during a Fox News segment about the possibility of a 90-day pause to the sweeping tariffs. Hesitating, Hassett vaguely responded that Trump “will decide what the president is going to decide,” offering no confirmation that such a move was being considered.
Despite the lack of clarity, major outlets like Reuters and CNBC picked up the headline, lending it unwarranted legitimacy. CNBC even cited it to explain the stock market’s sudden surge, resulting in trillions of dollars in gains within minutes. The outlet later admitted to airing unverified information, stating: “As we were chasing the news of the market moves in real-time, we aired unconfirmed information in a banner. Our reporters quickly made a correction on air.”
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Rather than calming the fears of millions of Americans struggling under the pressure of rising costs and worried about inflation, Trump took to social media to deflect blame. He wrote in a Truth Social post: “The United States has a chance to do something that should have been done DECADES AGO. Don’t be Weak! Don’t be Stupid! Don’t be a Panican (A new party based on Weak and Stupid people!). Be Strong, Courageous, and Patient, and GREATNESS will be the result!”
The Trump administration maintains that the tariffs represent a chance to restructure the global trade system in America’s favor. Trump insists that oil prices, interest rates, and food prices are down, claiming, “there is NO INFLATION.”
However, criticism is mounting from working-class Americans to wealthy business leaders, many of whom fear the policy could harm their economic interests. Bill Ackman, CEO of Pershing Square Capital Management and a Trump 2024 endorser, warned on Sunday, April 6, that enacting the tariffs would be akin to launching an “economic nuclear war.” He added, “We are heading for a self-induced, economic nuclear winter, and we should start hunkering down.”
Meanwhile, comedian Jon Stewart took aim at the administration’s messaging on The Daily Show, mocking its downplaying of economic anxiety.
“Our economy is in the midst of a beautiful metamorphosis, turning from a simple caterpillar into a dead caterpillar,” Stewart said, his biting remarks resonating with millions of Americans who have been turning to comedy to deal with the looming sense of crisis.
