The US government recently announced a 90-day pause on certain tariffs, specifically for goods from countries other than China. Here’s what you need to know¹:
- *Tariff Pause*: This pause applies to additional tariffs beyond the base 10% tariff imposed on most countries. This means that the base tariff still applies.
- *Exemptions*: China is excluded from this pause and will continue to face higher tariffs, which recently increased to 125%. Canada and Mexico are also not included in this pause due to ongoing negotiations.
- *Impact*: This pause aims to facilitate negotiations with other countries without triggering retaliatory tariffs. However, there is still uncertainty about the final tariffs and the potential impact on businesses and consumers.
- *Economic Impact*: These tariffs are expected to cost American households about $4,600 per year, with price increases for electronics, cars, clothing, and other goods. Some businesses may delay investments or postpone orders due to uncertainty.
*Key Details:*
- *Tariff Rates*: The base tariff is 10% for most imported goods, with higher tariffs for certain countries and products.
- *Affected Products*: Various items, including electronics, cars, steel, aluminum, and auto parts, are subject to tariffs.
- *Business Impact*: Companies may face increased costs, supply chain disruptions, and uncertainty about future market dynamics.²