Trump pauses tariffs for 90 Days, hikes duties on Beijing to 125%
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U.S. President Donald Trump announced on Wednesday a 90-day suspension of reciprocal tariffs affecting 180 countries, in a move aimed at allowing time for governments to open negotiations and potentially reach new trade agreements. Despite the pause, a 10% tariff will remain in place for all countries during the moratorium—while tariffs on Chinese goods will soar to 125%.
Trump defended the decision by accusing China of showing a lack of respect for global markets, underscoring rising tensions between Washington and Beijing.
The sweeping tariffs had originally been unveiled on Tuesday, April 1st—what Trump dubbed "Liberation Day"—as part of a controversial strategy to bring manufacturing jobs back to the United States and reduce reliance on foreign imports. However, the announcement triggered a sharp and immediate reaction in global financial markets. Stock exchanges worldwide tumbled, erasing trillions of dollars in value within hours. Wall Street suffered its worst losses since 2020.
Economists were quick to criticize the administration’s protectionist turn, warning that such policies would likely raise the cost of living and increase the risk of a recession. The backlash sparked alarm across governments, financial institutions, and among consumers.
Markets rebounded sharply following Trump’s announcement of the tariff suspension. The S&P 500 posted a dramatic 9.5% gain—the index’s strongest performance since 2008, the tech-heavy Nasdaq 100 climbed 12%. In a notable reversal, Goldman Sachs economists withdrew their recent forecast predicting a U.S. recession, signaling renewed confidence in the short-term outlook for the American economy.
Trump defended the decision by accusing China of showing a lack of respect for global markets, underscoring rising tensions between Washington and Beijing.
The sweeping tariffs had originally been unveiled on Tuesday, April 1st—what Trump dubbed "Liberation Day"—as part of a controversial strategy to bring manufacturing jobs back to the United States and reduce reliance on foreign imports. However, the announcement triggered a sharp and immediate reaction in global financial markets. Stock exchanges worldwide tumbled, erasing trillions of dollars in value within hours. Wall Street suffered its worst losses since 2020.
Economists were quick to criticize the administration’s protectionist turn, warning that such policies would likely raise the cost of living and increase the risk of a recession. The backlash sparked alarm across governments, financial institutions, and among consumers.
Markets rebounded sharply following Trump’s announcement of the tariff suspension. The S&P 500 posted a dramatic 9.5% gain—the index’s strongest performance since 2008, the tech-heavy Nasdaq 100 climbed 12%. In a notable reversal, Goldman Sachs economists withdrew their recent forecast predicting a U.S. recession, signaling renewed confidence in the short-term outlook for the American economy.