Tariff suspension: It seems you are asking about 'tariff suspension.' Here is a breakdown of what is happening regarding tariffs as of today, April 26, 2025: the latest tariff status and suspension:
Announcement of comprehensive tariffs: On April 2, 2025, the U.S. administration announced a 'base' tariff of 10% on imported goods from most countries, with much higher tariffs on some.
90-day suspension: By April 9, 2025, a 90-day suspension of additional tariffs (beyond the 10% base rate) for most countries has been announced. This suspension aims to encourage negotiations and prevent retaliatory actions.
China exemption: Notably, China is excluded from this 90-day suspension. In fact, tariffs on imports from China have increased further.
Reciprocal tariffs: The U.S. administration's policy includes 'reciprocal tariffs' targeting countries with trade surpluses with the United States. These tariffs are designed to balance trade barriers. Key points about the suspension:
Negotiation tool: The suspension is viewed as a preliminary step in negotiations with various trading partners.
Reduced reciprocal tariffs: During the 90-day suspension for most countries, a reduced reciprocal tariff of only 10% applies.
Market reaction: The announcement of the tariff suspension led to a rise in U.S. stock markets.
Bond market impact: Reportedly, concerns within the Treasury about the bond market's reaction to tariffs played a role in the decision to suspend.
Ongoing uncertainty: Despite a suspension for most countries, the long-term trend of tariff policies remains uncertain and depends on ongoing negotiations. The impact of tariffs (in general):
Increased costs: Tariffs generally increase the cost of imported goods for businesses and consumers.
Inflation: These rising costs may contribute to inflation.
Decline in trade: Tariffs can lead to a decrease in the volume of international trade.
Economic slowdown/recession risk: Some economists warn that high tariffs and trade disputes could slow economic growth and increase the risk of recession.
Trade uncertainty: The changing landscape of tariffs creates uncertainty for businesses, making planning and investment difficult.
Retaliatory actions: Tariffs imposed by one country often lead to retaliatory tariffs from other countries, escalating trade tensions. Current tariff policies (as of late April 2025):
Reciprocal tariffs: The United States applies tariffs based on a 'reciprocal' approach, targeting countries with trade deficits.
Tariffs on steel and aluminum: The 25% tariffs on imports of steel and aluminum remain in effect, with recent expansions.
Tariffs on China: Tariffs on Chinese goods remain high and have increased, with the current overall rate reaching 125% on most imports from China.
90-day suspension (most countries): As mentioned, additional tariffs beyond the 10% base rate have been suspended for 90 days for most trading partners (excluding China) starting April 10, 2025. During this period, a reciprocal tariff of 10% applies.
Country-specific rates: Specific tariff rates vary by country and product. It's a complex and evolving situation. The 90-day suspension provides a window for negotiations, but the long-term impact of these tariff policies on the global economy remains unclear.