#TariffsPause

In April 2025, President Donald Trump announced a "Tariff Pause" for 90 days, during which new U.S. tariffs on most countries were temporarily suspended, although strict restrictions on China remained in place. This decision was made following a severe downturn in financial markets and concerns of a potential recession, resulting in a rally in the stock market. While this pause provided temporary relief to several countries, tariffs on Chinese products were increased by up to 145%. A 10% baseline tariff still applies to other countries, while goods shipped before the end of May remained exempt.

President Trump has made it clear that this pause is temporary and that further tariffs may be imposed in the future. Investor Bill McMahon criticized this strategy, stating that political pressure and fears of weakness are major obstacles to an agreement between the U.S. and China. On the other hand, countries like South Korea are engaged in negotiations to gain exemptions.

Experts are warning that if tariffs continue, the U.S. may face inflation, shortages, and economic slowdown.