Trump Enacts 90-Day Tariff Pause Amid Trade Tensions

In a surprising shift, President Trump has paused tariff implementations for 90 days, excluding China, which will see its export tariffs rise to 125 percent. This decision arises amid escalating trade disputes and follows recent retaliatory measures from the European Union.

In a strategic turn of events, U.S. stocks surged as President Trump declared a 90-day pause on tariffs applicable to most countries, leaving out China, which is set to experience a steep increase in tariffs on its exports to the U.S., now hitting 125 percent. This announcement comes amid an ongoing trade war, where China had recently raised tariffs on American goods to 84 percent.

In terms of broad trade policy, the White House affirmed that the new blanket tariff level would be reduced to 10 percent, with notable exclusions for key trading partners such as Canada and Mexico. Financial markets have reacted positively; this change comes closely after the European Union approved retaliatory measures following the escalating trade conflict, also correlating with a downturn in U.S. bonds.

During a media interaction, President Trump explained his decision to pause tariffs by stating, “Well, I thought that people were jumping a little bit out of line. They were getting yippy. They were getting a little bit afraid.” He emphasized that while this pause represents progress, “nothing is over yet,” citing a promising interest from over 75 countries in seeking new trade agreements. The U.S. Treasury Secretary later remarked that the tariff strategy has been part of Trump's overall game plan all along, hinting at a complex, evolving trade landscape.