Jesse Watters: The Art of the Deal

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MAGA media celebrated Trump caving on “reciprocal” US-China tariffs

The negative side effects of Trump’s import taxes continue piling up on the American economy

Written by Zachary Pleat & Craig Harrington

Published

MAGA media personalities were quick to celebrate the White House’s announcement that American and Chinese trade negotiators had agreed to a 90-day reduction in retaliatory import taxes.

The deal, which was struck after just one weekend of bilateral meetings in Switzerland, saw the U.S. reduce import taxes on Chinese goods from 145% to 30% as China simultaneously reduced its own retaliatory tariff rate from 125% to 10% on American goods. The plan removes all of the so-called “reciprocal” tariffs unilaterally imposed by President Donald Trump on April 2, which he ratcheted up over the ensuing weeks as the U.S. and China spiraled into a full-on “trade war.” The temporary tariff deal leaves in place a 10% across-the-board import tax and an additional 20% in fentanyl-related retaliatory tariffs.

Some conservative voices were critical of the administration, noting that Trump “blinked” on his extreme tariff proposals (again) and announcing that “China has successfully called Trump's bluff.” But MAGA media outlets fell in line for predictable celebration of Trump’s hasty decision to walk back from his initial tariff plans, with some praising Trump for mastering “the Art of the Deal” and delivering “Pax Americana.” Meanwhile, experts continue warning of the negative repercussions from Trump’s previous and continuing imposition of tariffs on imported goods.

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  • U.S. and China agreed to temporarily slash retaliatory tariffs

    • The New York Times: “The White House backed off from the steepest levies, as the costs of an all-out trade war with China threatened global economic growth.” The New York Times reported that “after President Trump had repeatedly declared that he would not lower tariffs without concessions from China … despite the White House’s bluster, the Trump administration backed off, for now, from its steepest tariffs, and agreed to hold more formal talks with Beijing after companies and consumers started showing signs of economic strain.” The Times reported that a joint statement announced that “the United States and China said they would suspend their respective tariffs for 90 days and continue negotiations they started this weekend. Under the agreement, the United States would reduce the tariff on Chinese imports to 30 percent from its current 145 percent, while China would lower its import duty on American goods to 10 percent from 125 percent.” Additionally, the Times reported that China will suspend its restriction on exporting rare earth minerals and other critical materials to the U.S. that it instituted to retaliate against Trump’s tariffs. [The New York Times, 5/12/25]

  • Some conservative media figures called out Trump for caving on extreme “reciprocal” tariffs on Chinese imports

    • Fox Business correspondent Charles Gasparino: “BREAKING: Trump raised tariffs on the world, the markets, particularly the bond market -- which we need to finance our debt--rebelled. Trump then was forced to back off. End of story.” Gasparino added, “Film at 11 of the president spinning this as a major victory.” In an earlier post, Gasparino wrote, “BREAKING: Both sides blinked.” [Twitter/X, 5/12/25, 5/12/25]
    • National Review senior writer Noah Rothman mocked Trump’s cave: “*Trump puts gun to the head of the American economy. World stares quizzically* ‘Brilliant! Had to be done.’ *Trump lowers gun. World continues to stare quizzically* ‘Masterful! This is how deals are made.’” [Twitter/X, 5/12/25]
    • The Wall Street Journal quoted economist Mark Williams' statement that “China has successfully called Trump’s bluff.” Williams, chief Asia economist at Capital Economics, added: “It will be interesting to see whether China is willing to offer anything substantive in these talks, but I can’t see that they’ll feel under a huge amount of pressure to do so.” He also told The Wall Street Journal that there were no concrete commitments from China about its trading relationship with the U.S. [The Wall Street Journal, 5/12/25]
    • Rupert Murdoch-founded Sky News: “Why Trump blinked in US-China trade war.” A Sky News article stated: “It’s hard not to escape the conclusion that the US president has blinked in this trade war. In the face of a potential recession, he has pulled back from the scariest and most damaging of his tariffs, earlier and to a greater extent than many had expected.” [Sky News, 5/12/25]

  • Other MAGA media praised Trump over his latest tariff blink

    • Fox News anchor Harris Faulkner: “What we are anticipating is ‘The Art of the Deal.’” Faulkner’s boast about Trump’s purported negotiations process with China came as she and guest Sen. Marsha Blackburn (R-TN) promoted Trump leading a U.S.-Saudi investment agreement. [Fox News, The Faulkner Focus, 5/13/25]
    • Fox Business host Larry Kudlow: Trump “is a disruptor, but he is also a master strategist.” Kudlow, a former Trump economic adviser, dedicated a segment to the president’s supposed negotiating acumen, characterizing his decision to walk back tariffs on China as part of Trump’s “shock and awe reciprocal fair trade policy.” [Fox Business, Kudlow, 5/13/25]
    • Fox Business host Cheryl Casone: “Christmas is saved.” Casone continued by noting that “these CEOs woke up yesterday morning and started getting all of their goods in for the Christmas selling season,” without noting that the disruptions facing American consumers were the result of Trump's own tariff policies. [Fox News, Fox & Friends First, 5/13/25]
    • One America News chyron: “President Trump is a master of the Art of the Deal.” OAN host Dan Ball boasted “global markets are skyrocketing” in response to the temporary U.S.-China tariff deal. Ball continued celebrating the deal with former Trump spokesperson Hogan Gidley, who complained “the media is never going to give Donald Trump any credit” for his policy agenda. [One America News, Real America with Dan Ball, 5/12/25]
    • Newsmax host Rob Schmitt: “People should be cheering this on.” MAGA podcaster and former Fox Business personality Trish Regan added that “everybody should be basically singing a song of joy” and that “we get to actually have our cake and eat it too.” [Newsmax, Rob Schmitt Tonight, 5/12/25]
    • Fox’s Jesse Watters: “Every peace deal brokered, every investment announced, every trade pact signed creates a sense of destiny.” Watters continued that Trump was building “unstoppable momentum that could make his second term the most transformational years of this century.” Watters then sparred with Sen. Rand Paul (R-KY), a self-described “supporter of Donald Trump’s” who expressed some skepticism of how the reduced tariffs would still adversely affect American consumers. Watters particularly pushed back on Paul’s description of tariffs as “taxes” and suggested that the increased import taxes implemented by Trump could be offset by corporate tax cuts. [Fox News, Jesse Watters Primetime, 5/12/25]
    • Fox Business host Charles Payne: “It feels like Pax Americana again.” Payne later suggested that Trump’s “strong” negotiations stance with China could forestall an invasion of Taiwan. [Fox Business, Kudlow, 5/12/25]
    • Fox Business host Stuart Varney said “the China deal vindicates Trump’s trade revolution,” calling it “history in the making.” Varney outlined a litany of Trump’s supposed recent accomplishments, which he called “a tsunami of positive news,” and concluded by boasting “Trump is on a roll.” [Fox Business, Varney & Co., 5/12/25]
    • Fox guest and former Trump economic adviser Stephen Moore: “This is a blockbuster. This is huge.” Moore added, “I'm not a big tariff guy. You know, I’ve been skeptical that this strategy would work.” He continued: “This is very, very good news for the American economy. Very good news for American businesses. I didn't think Trump could pull it off but it looks like he has.” [Fox News, America’s Newsroom, 5/12/25]
    • On Fox’s Hannity, Moore declared: “Donald Trump is on an amazing roll.” Moore continued his praise of Trump’s dealmaking during a prime-time interview on Fox’s flagship prime-time program, again describing the U.S.-China tariff negotiations as a “blockbuster” and concluding “I was wrong” for his initial disapproval of Trump’s tariff policies. Fox Business personality David Asman later chastised critics who pointed out that Trump’s “capitulation” on tariffs was another example of the president hastily walking back his policies. [Fox News, Hannity, 5/12/25]
    • Fox columnist Liz Peek: “This is what the world was waiting for. I would describe this as strategic recoupling. … I think altogether this was a win-win.” [Fox Business, Mornings with Maria, 5/12/25]
    • Radio host James Golden, known as Bo Snerdley, shared a Fox clip titled “Trump says China will open up country's market to US business following trade talks in Switzerland” and wrote: “IF China's government actually doesn't cheat on this ‘agreement’ - IF they keep their word - IF they aren't lying (again) to us - this is BIG.” [Twitter/X, 5/12/25]
    • Radio host Erick Erickson: “Reality: Trump got a big win against China.” Erickson continued: “Hatred of Trump is skewing a lot of the perspective here, but the reality is the status quo was hurting us, but hurting China even more.” [Twitter/X, 5/12/25]
    • Gateway Pundit: Tariff rollback is a “major win for President Donald Trump’s America First trade doctrine.” The Gateway Pundit article continued that the agreement is “a testament to Trump’s uncompromising stand against unfair trade imbalances.” [The Gateway Pundit, 5/12/25]

  • Economists explain that Trump’s continued trade war is still damaging America’s economy

    • Yale Budget Lab director of economics Ernie Tedeschi: Trump’s tariff reduction still causes price increases, less economic growth, and more unemployment. Tedeschi explained that Trump’s full tariff policy still harms the U.S. economy: “The PCE price level rises by 1.7% pre-substitution assuming no Fed response. This is the equivalent of a loss in purchasing power of $2,800 per household per year in 2024$.” He added: “US real GDP growth over 2025 is 0.7pp lower. The unemployment rate is 0.4pp higher in 2025 Q4, and employment is -456K lower. In the long-run, US real GDP is -0.4% smaller in level terms, the equivalent of a $110bn loss in 2024$ each year every year.” [Twitter/X, 5/12/25, 5/12/25]
    • Center on Budget and Policy Priorities senior director for federal fiscal policy Brendan Duke: Trump’s reduced tariffs still result in “1.) Higher consumer prices. 2.) U.S. exporters less competitive globally given higher input prices. 3.) Stalled investment since tariffs instantly can come back on.” [Twitter/X, 5/12/25]
    • Duke: “Why Trump blinked: the Port of Los Angeles was looking at about a ~20% drop in import containers compared to the same period last year.” Duke added: “That is the making of a supply chain crisis and it's difficult to put the genie back into that bottle.” [Twitter/X, 5/12/25]
    • Sharing Duke’s post, Center for Economic and Policy Research senior economist Dean Baker wrote: “We're talking about something around a $400 billion tax increase with Trump's tariffs. That's a big hit to the economy.” [Twitter/X, 5/12/25]
    • Tax Foundation vice president of federal tax policy Erica York: Trump’s tariff rollback is “an admission that Trump's tariff tantrum would have been devastating for the US economy.” [Twitter/X, 5/12/25]
    • Arkansas Center for Research in Economics Director Jeremy Horpedahl: “Wow, great day for the S&P 500. All Trump has to do is rollback one more major tariff, and we'll basically be back to break even since he took office!” [Twitter/X, 5/12/25]
    • Manhattan Institute senior fellow Jessica Riedl: “So to sum up: 1) Trump creates trade war. 2) S&P crashes 20%, interest rates soar, GDP declines. 3) Trump gradually surrenders much (but not all) of tariffs with virtually nothing in return. 4) Markets recover some of their losses. 5) MAGA does trade war victory dance (?!!?!).” [Twitter/X, 5/12/25]