#Tariffspause

In April 2025, President Donald Trump announced a 90-day #Tariffpause, temporarily suspending new "reciprocal" tariffs on most countries except China. This decision followed heavy market turmoil and fears of a recession. The announcement triggered a strong rally in the U.S. stock market, with the S&P 500 seeing its largest one-day gain since 2008. Despite the pause, tariffs on Chinese goods were increased to 145%, maintaining high tensions between the U.S. and China. A baseline 10% tariff remained on imports from other countries, and goods already in transit before May 27 were exempt.

Trump recently stated that another 90-day pause is unlikely, signaling a tougher trade stance moving forward. Billionaire investor Bill Ackman criticized the ongoing tariffs, arguing that both the U.S. and China fear appearing weak if they back down. Meanwhile, countries like South Korea are seeking exemptions before the pause expires in July.

Economically, the tariffs are disrupting global supply chains. Cargo volumes from China have dropped sharply, with the Port of Los Angeles expecting a 35% decline. Companies are shifting production to Southeast Asia, and experts warn of rising prices and potential shortages in U.S. stores. The IMF projects slower U.S. GDP growth and higher inflation as a result.