In Congress, Trump's Tariff Pullback Sparks Relief, Frustration, and Suspicion

President Donald Trump’s decision Wednesday afternoon to pause most of his newly announced tariffs for 90 days sparked a wave of mixed reactions on Capitol Hill: jubilation among Republicans, deep skepticism among Democrats, and a fresh round of questions about the President’s motivations and methods.

The pause—which maintains a 10% global tariff and ratchets up duties on China to 125%—sent markets soaring, with the S&P 500 jumping 9.5%, its sharpest single-day gain since 2008. But while some lawmakers called it a prudent course correction, others saw chaos masquerading as strategy.

“It’s like he wakes up every morning and has a different plan for what to do,” Sen. Tina Smith, a Minnesota Democrat, tells TIME of Trump’s latest reversal. A TIME analysis in February found that the Trump Administration has already reversed itself more than a dozen times in high-profile decisions.

The surprise announcement—made via Trump’s Truth Social account while top trade officials were testifying before Congress—left many lawmakers scrambling for details. U.S. Trade Representative Jamieson Greer was defending the tariffs in the middle of a House Ways and Means Committee hearing when the news of Trump’s reversal came to light. Greer told the committee he was learning of the pause “in real time.” “I understand it’s 90 days, I haven’t spoken to the President since I’ve been in this hearing,” he said.

Despite the lack of clarity, Republican lawmakers appeared largely relieved. GOP senators described “cheering and clapping” during a closed-door lunch as the news broke. Sen. John Cornyn of Texas described a room full of lawmakers checking their retirement accounts. “Jubilation is too strong a word,” he told reporters. “It was positive.”

Sen. Ted Cruz, a Texas Republican who had publicly raised concerns with Trump’s tariff strategy, framed the reversal as what he hoped was part of a broader plan to use tariffs as leverage to reduce trade barriers and boost U.S. businesses. “President Trump has an opportunity to achieve one of the most extraordinary economic successes for America in history,” Cruz tells TIME. “Today’s announcement was terrific.”

“It proves that Trump’s a good deal maker,” added Sen. Chuck Grassley, an Iowa Republican who introduced a bill last week that would limit the president’s authority to unilaterally impose tariffs—a bill that Trump has threatened to veto if passed. “I think it brings predictability. It shows moderation. It shows that there’s kind of an end game. And I think it’s going to bring credibility to his whole process.”

Sen. Rand Paul, a Kentucky Republican who has long opposed tariffs, welcomed the rollback but questioned why it had taken so long—and at such cost. “When you add a bunch of tariffs, you’ll lose $6 trillion in the marketplace,” he said. “When you get rid of the tariffs, guess what, it comes pounding back.” He added, “I hope there’s a lesson learned.”

Trump’s latest tariff policy draws a sharp distinction between adversaries and allies, dialing back taxes on imports from Europe and North America while doubling down on punitive measures against Beijing. Under the revised structure, Chinese goods will face tariffs as high as 125%. Administration officials say the move is a deliberate effort to isolate China’s practices—currency manipulation, IP theft, and forced technology transfers—as uniquely harmful.

“Somebody has finally called the question on China,” Sen. Lindsey Graham, a South Carolina Republican, tells TIME. “They manipulate their currency, they steal our intellectual property. And now they’re going to have to answer for it.”

But for all the relief, the reversal also underscored the very instability that has unsettled global markets and strained relationships with U.S. allies. While some Republicans cast the pause as a sign of Trump’s flexibility, others quietly acknowledged it as evidence of a reactive, improvisational approach that is making it harder to plan for the future—on Wall Street or in Washington.

Democrats were far less forgiving. Many accused Trump of playing games with global markets and destabilizing the economy for political gain. Sen. Tim Kaine, a Virginia Democrat, tells TIME that Trump “needs to end the emergency” he declared to enact his tariffs “and start over.” 

“The chaos he’s injecting in the economy is horrible,” Kaine adds. “Right now, he’s put tariffs on nations who have trade surpluses, tariffs on nations that have no trade barriers at all with the United States. It’s just a nonsensical policy.”

Smith, the Minnesota Senator, described a constituent who sold some investments after panicking over their falling retirement savings—only to watch the market rebound after Trump’s announcement. She said Trump should fully reverse his tariff policy and pause the 10% rate he’s imposed on most countries.

Other Democrats raised more serious concerns. Sen. Adam Schiff of California told TIME that Congress should investigate whether Trump engaged in insider trading or market manipulation. “I’m going to do my best to find out,” he said in an interview. “Family meme coins and all the rest of it are not beyond insider trading or enriching themselves. I hope to find out soon.”

The White House, meanwhile, attempted to project its rollback as part of a larger strategic arc. “It was the strategy all along,” said Treasury Secretary Scott Bessent. Yet the official message was quickly undercut by the President himself, who acknowledged he had been watching the sell-off in the bond market and suggested his motivation had less to do with economic doctrine and more with investor fallout. “The bond market right now is beautiful,” he told reporters soon after he announced his reversal. “But I saw last night where people were getting a little queasy.”