During this period, a substantially lowered reciprocal tariff rate of 10% will be in effect. This decision comes in response to outreach from numerous nations seeking to negotiate trade agreements with the United States.
However, China is notably excluded from this tariff suspension. President Trump has raised tariffs on Chinese imports to 125%, citing China’s “lack of respect” for global markets. This move has prompted immediate retaliation from Beijing, escalating trade tensions between the two economic powerhouses.
The implementation of these tariffs has had significant repercussions on global financial markets. Major indices have experienced volatility, with sharp declines in European and Asian stock markets. Oil prices have also fallen below $60 per barrel, and U.S. Treasury yields have spiked amid a bond sell-off, raising concerns about a potential recession.
Economists and business leaders have expressed apprehension regarding the potential for a severe economic downturn. Billionaire hedge fund manager Bill Ackman warned of an “economic nuclear winter,” urging a 90-day suspension of recent U.S. tariffs to prevent a significant market downturn.
In response to these developments, several countries, including members of the European Union, have initiated retaliatory measures. The EU has approved retaliatory tariffs worth €21 billion on U.S. goods, while other nations are seeking negotiations to mitigate the impact of the U.S. tariffs.
The Trump administration maintains that these tariff measures are necessary to address longstanding trade imbalances and to promote fair trade practices. Treasury Secretary Scott Bessent indicated that negotiations with countries like Japan, South Korea, and India are ongoing, suggesting a potential path toward easing tensions.
As the 90-day pause takes effect, the global community will be closely monitoring the outcomes of the forthcoming trade negotiations and their implications for international economic stability.
The post President Trump Approves 90-Day Tariff Pause for Trade Allies appeared first on Coindoo.
