- Stock markets fell on Thursday following a historical rally after President Donald Trump announced a 90-day pause on some tariffs.
- Trump said he is not ruling out an extension of the tariffs pause.
- He added that he plans to slow deportations for illegal immigrants who are farmers or hotel workers.
President Donald Trump held a Cabinet meeting Thursday, acknowledging “transition problems” with tariffs which led to a 90-day pause on tariffs for most countries other than China.
But stocks declined on Thursday after a historic rally on Wednesday, which aligned with the reprieve on tariffs.
During the surge in stocks on Wednesday, the S&P 500, Nasdaq and Dow all saw their biggest single-day gains in years, according to CNBC. But by the close of the markets on Thursday, U.S. stocks ended in negative territory.
The Dow Jones Industrial Average fell 2.5%, the S&P 500 dropped 3.46% and the Nasdaq Composite was down 4.31%
During Thursday’s Cabinet meeting, Trump redirected a question about the market drop to Treasury Secretary Scott Bessent, saying he hadn’t seen anything about it yet due to being in the meeting.
Bessent said that as negotiations play out “we will end up in a place of great certainty over the next 90 days with tariffs.”
Of the tariffs Trump said, “there will be a transition cost and transition problems, but in the end it’s going to be a beautiful thing,” per The Associated Press.
“I don’t see anything unusual today,” he added.
According to CNBC, Trump did say that he is not ruling out an extension to the 90-day pause on tariffs, adding “We’ll have to see what happens at that time.”
Trump talks China, Cabinet members during meeting
During the meeting, Trump addressed the escalating trade war with China, saying he has great respect for President Xi Jinping and that they are good friends. He said he believes they will be able to work something out that is good for both countries.
As of Thursday, the tariffs on China were at 145%, per The New York Times.
“We’ll see what happens with China. We would love to be able to work a deal. They’ve really taken advantage of our country for a long period of time,” the president said.
The president also announced that he will be slowing deportations for specific groups of migrants in the country illegally such as hotel and farm workers.
Speaking about farm workers, Trump said “If they have strong recommendations for their farms, for certain people, we’re going to let them stay in for a while, work with the farmers, and then come back and go through a process, a legal process, but we have to take care of our farmers.”
Trump also spent time in the meeting praising the members of his Cabinet, quashing reports that there have been clashes between high-ranking members of the administration, according to ABC.
Department of Government Efficiency adviser Elon Musk attended the meeting.
“Everyone at this table is doing an incredible job,” he said. “By the way, I have to say, incredible. And the relationships are — it’s like they’re friends. The relationships are very strong, really good, really strong. And these meetings are very good.”