#TariffsPause

On April 9, 2025, President Trump announced a 90-day pause on a wide range of proposed new tariffs, aiming to provide a window for trade negotiations with various countries. This pause, however, excluded China, which faced increased tariffs of up to 145% .  

The announcement led to a significant rebound in the stock market, with the S&P 500 experiencing its largest one-day gain since 2008 . Despite this, President Trump later indicated that another 90-day tariff pause is unlikely, emphasizing his confidence in securing favorable trade agreements .  

The initial pause was seen by many as a response to market volatility, particularly in the bond market, where yields on the 10-year US Treasury rose sharply . Analysts suggest that the bond market is exerting a stronger influence on Trump’s policy decisions than the stock market, serving as a constraint on economic policy moves with broader implications for average Americans . 

In the wake of these developments, countries like South Korea are aiming to finalize trade agreements before the tariff pause ends in July . Meanwhile, concerns over global trade tensions have led to economic forecast revisions in countries such as South Africa, where the 2025 growth forecast was cut to 1.5% .  

As the July deadline approaches, the global economic landscape remains uncertain, with the potential for renewed tariff enforcement and its associated impacts on international trade and markets.