Trump Caves on Two Major Issues
Author: Greg Valliere
November 17, 2025
No one can switch positions like Donald Trump, who moved this past weekend to appease nervous Republicans.
The issue that had the biggest impact for the markets is Trump’s shift on tariffs — he has lowered them for a modest range of products: coffee, fruit, etc.
This may be the beginning of a change by Trump. He finally may concede that higher tariffs bring shortages, which bring inflation. Trump’s tariff policies are loathed by most Republicans in Congress.
This seeming shift won’t end protectionism, but it sends a signal to the markets and corporations. The bazaar is open for dealing; Trump will raise or lower tariffs whenever it’s politically expedient.
That surely applies to Trump’s astonishing cave on the Epstein files — The president was told firmly by his aides that he could lose by at least 40 votes in the House tomorrow. So he has agreed to release the files rather than let this drag out. The Senate vote would have been closer but why let this issue linger past Thanksgiving?
The polls are brutal, both for Trump’s economic policies and his handling of the Epstein scandal. As his job approval number plunges, the GOP is in danger next fall.
As we wrote last week, if the Republicans lose the House, making Trump a de facto lame duck, Democrats will immediately move to impeach.
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