Trump clashes with reporter over tariff strategy, defends recent reductions as part of ongoing trade negotiations.

Oval Office Clash Over Tariff Policy

President Donald Trump confronted a reporter during an Oval Office press gaggle on Wednesday after being questioned about his approach to tariffs. The exchange took place when CNBC White House correspondent Megan Casella referenced a term coined by Wall Street analysts—'TACO trade'—meaning 'Trump Always Chickens Out.'

Casella asked if Trump had retreated from his tariff threats, a move that some analysts claimed contributed to the week’s market gains. Trump responded sharply, calling it a “nasty question” and defending his recent actions regarding tariffs imposed on China and the European Union.

“You mean because I reduced China from 145% that I set down to 100 and then down to another number?” Trump asked rhetorically. “And because I gave the European Union a 50% tariff? And they called up, and they said, ‘Please, let’s meet right now.’”

He emphasized that the tariff reductions were deliberate moves in a larger negotiation strategy, not signs of weakness. Trump noted that the EU agreed to meet by July 9 and claimed this diplomatic progress would not have occurred without the initial strong stance.

Defending Trade Tactics

Trump contrasted his administration’s position with that of President Biden’s, saying the U.S. economy had been “stone-cold dead” before his return to office. “We had a dead country. We had a country people didn’t think was going to survive. And you ask a nasty question like that? It’s called negotiation,” he said.

Trump continued his defense, pointing to what he described as $14 trillion now committed to investing in the U.S., compared to what he claimed was near-zero investment during the Biden years. He asserted that tariff moderation was a calculated move to ensure stronger international agreements and economic growth.

The President concluded his remarks by criticizing the framing of Casella’s question. “Don’t ever say what you said. That’s a nasty question. To me, that’s the nastiest question,” he said before moving on to another reporter.

Casella later commented on the exchange during her appearance on CNBC’s “The Exchange,” noting Trump’s visible displeasure with the line of questioning and joking that being called “nasty” was something of a “badge of honor.”

Earlier this month, Trump’s administration announced a temporary reduction of China’s tariffs from 145% to roughly 30%, as part of ongoing trade discussions. Tariffs on other nations, including those in the EU, were paused until July to allow for continued negotiation. The administration has framed these actions as a tactical effort to secure more favorable long-term trade deals for the U.S.