Trump Hits Pause on Global Tariffs Amid Market Turmoil

5mins read: Facing financial market instability, President Trump suspends most tariffs for 90 days, intensifying focus on China with increased import duties.

Hey Small Biters,

In a significant policy reversal, President Donald Trump has announced a 90-day suspension of his "reciprocal tariffs" on imports from all countries except China. This decision comes amid escalating concerns over financial market volatility and the potential for a 2008-style economic crisis. ​

The abrupt shift follows a period of aggressive tariff implementations that had unsettled global markets. Despite initial defiance against critics, the administration's stance softened in response to alarming developments in the bond market, where investor pullbacks signaled fears about the U.S. government's financial stability.

Not to mention President Trump tweeted “THIS IS A GREAT TIMR TO BUY!!! DJT” almost 4 hours before he mentioned about 90 days pause which is a clear indication of market manipulation.

While the suspension offers temporary relief to many trading partners, the administration has simultaneously escalated its trade conflict with China by increasing tariffs on Chinese imports to 125%. This move underscores a strategic pivot to concentrate trade pressures on Beijing while alleviating tensions with other nations. ​

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The stock market responded positively to the announcement, with the S&P 500 experiencing one of its largest gains since World War II. However, economists caution that the underlying economic challenges persist, with Goldman Sachs projecting a mere 0.5% growth for the year and a 45% chance of recession. ​

Despite the temporary tariff relief, the administration maintains a general 10% tariff on imports, with certain exceptions like vehicles facing a 25% rate. Goods from Mexico and Canada, covered under the USMCA, are excluded from these tariffs. ​