#TariffsPause

📉 Navigating the Shifting Landscape of U.S. Trade Policy

In early April 2025, President Trump announced a 90-day pause on new tariffs for most U.S. trade partners, aiming to ease global economic tensions. This pause excluded China, which faced increased tariffs of up to 145% due to its retaliatory measures.

However, on April 25, President Trump stated that extending the 90-day pause is unlikely, signaling a possible return to a tougher trade approach.

Market Reactions and Economic Indicators

The initial pause boosted markets significantly: the S&P 500 jumped over 9%, while the Nasdaq surged 12%. Despite this, consumer confidence plummeted—University of Michigan data shows a 32% drop in economic expectations since January, the sharpest since the 1990s.

Global Trade Dynamics

The EU and Asian countries like Taiwan and South Korea welcomed the pause as a chance to renegotiate trade terms. Meanwhile, U.S.-China relations remain strained, with no active negotiations and continued retaliatory tariffs from Beijing.

Looking Ahead

The future of U.S. trade policy remains uncertain. The pause offered short-term relief, but renewed tariffs are on the horizon depending on global developments and domestic policy decisions.