On Wednesday(4/9/25), President Donald Trump announced a 90-day pause on new tariffs for most U.S. trading partners, offering a temporary reprieve amid growing economic anxiety. The decision followed the sudden imposition of double-digit tariffs on dozens of countries just hours earlier, a move that sent financial markets into a steep dive before rebounding strongly on news of the pause.
The revised policy leaves a universal 10% tariff in place on countries outside of Canada and Mexico, while maintaining steep duties on specific goods such as imported cars, steel, and aluminum. Tariffs on products from Canada and Mexico that fall outside the United States-Mexico-Canada Agreement remain at 25%. Meanwhile, tariffs on Chinese goods were raised to 125%, escalating the trade conflict with Beijing.
Trump said the move was designed to encourage cooperation. “They were getting a little bit yippy,” he told reporters, suggesting panic in response to the initial hike. The president later said the reversal came after more than 75 countries contacted U.S. officials expressing a willingness to negotiate.
Commerce Secretary Howard Lutnick confirmed that discussions with multiple countries are underway but cautioned that actual agreements will take time. “The real deals will take some time,” he said, emphasizing the need for strategic patience.
Despite the pause, economists warned that the current level of tariffs—especially those targeting China—will still lead to higher costs for American consumers and companies. “It is still above 20% and will result in big price increases for everything from clothing to cars to cell phones,” said Mark Zandi of Moody’s Analytics.
China responded by raising tariffs on U.S. goods to 84%, covering a wide range of products from agriculture to technology. Analysts suggest the response is designed to exert pressure while minimizing disruption to China’s own economy.
U.S. stock markets reacted with a massive surge following the announcement. The Dow Jones Industrial Average gained nearly 3,000 points, the S&P 500 rose over 9%, and the Nasdaq jumped 12%. However, these gains only partially offset losses from the previous week, when markets shed over $6 trillion in value following initial tariff threats.
Goldman Sachs lowered its estimate for a potential U.S. recession but continued to forecast minimal growth, citing ongoing uncertainty. Treasury Secretary Scott Bessent defended the pause, describing it as a move to strengthen negotiating leverage with foreign governments. “President Trump created maximum negotiating leverage for himself,” Bessent said.
The plan still leaves complex trade questions unresolved. With ongoing tariffs on cars, steel, and aluminum, and new ones pending on pharmaceuticals and lumber, businesses remain cautious. Leaders in agriculture, manufacturing, and retail sectors have voiced concern over long-term impacts on pricing and supply chains.
As the administration seeks to finalize trade deals during the pause, it faces pressure from both domestic industries and international partners. Trump has positioned tariffs as a method to rebuild domestic production and generate revenue, but critics question their sustainability and economic consequences.
For now, the 90-day pause offers a temporary window for diplomacy, though tensions with China remain elevated and volatility across global markets shows little sign of easing.
Image is in the public domain and was uploaded by V. L. Mastikosa.
