According to Germany's Bild publication report, Trump has become disillusioned with the results of his new tariff policy - he has started to dismiss advisors dealing with this issue. Trade advisor Peter Navarro and Commerce Secretary Howard Lutnick have been demoted to lesser positions.
This reshuffle is seen as a clear indication that the tariff war initiated by US President Donald Trump, and targeted against the whole world, is not going according to plan. On Wednesday, when the US government bond markets had a "favorable" start, a near financial crisis was averted.
Trump was forced to freeze the heavy tariffs imposed on imports from 75 countries for 90 days. However, the confrontation with China is becoming increasingly tense: Trump has ordered a 145 percent tariff on all Chinese goods. In response, Chinese leader Xi Jinping increased tariffs on US goods to 125 percent. He made his first statement on what is arguably the worst trade war in decades: "China is not afraid," said the leader of the Communist Party.
In the US, the restructuring of the tariff team is aimed at calming the markets. The emergence of Bessent, a reputable investor and former hedge fund manager on Wall Street, is seen as potentially calming the trade war. In the Trump administration, he is viewed as the voice of reason and logic. Last Sunday, Bessent flew to Trump’s Mar-a-Lago estate in Florida to meet with the president and called for more pragmatic policies. Bessent will now be the main advisor in upcoming negotiations with 75 countries.
In this process, Lutnick, who earned the moniker "Mr. Tariff," will also be active — he was the tragic head of the trading company “Cantor Fitzgerald” (658 of his employees were killed in the World Trade Center during the 9/11 attacks). He needs to act as a pressure figure. However, one thing is certain- Lutnick has been demoted to a “secondary” status amid disputes between those in Trump’s inner circle who support the trade war and those who favor fair, global trade.
Reportedly, Lutnick has even been a proponent of raising tariffs for only the penguin-inhabited Bouvet Island. Sources indicate that due to his "complex character," Lutnick is being kept in a limited role in negotiations. Recently, he has defended tariffs against the uninhabited Heard and McDonald Islands — home only to penguins. He believes that countries could use these Antarctic islands to formalize trade and evade tariffs.
Advisor Navarro appears to be the clear loser in this game. However, he still retains the president's confidence as the standard-bearer of the populist “tariff war.” Nonetheless, there are views that if Trump's plans to restructure the global economy fail, he will be retained in the administration as the “primary culprit” to be punished.
Abdulloh Sayyid
