On April 9, 2025, U.S. President Donald Trump announced a 90-day pause on most "reciprocal" tariffs, reducing them to a 10% baseline for goods from over 75 countries, effective immediately. This followed market turmoil, with Trump citing public unease and ongoing trade negotiations as reasons. The pause excludes China, where tariffs rose to 145% after Beijing’s retaliation, and maintains 25% duties on aluminum, steel, autos, and upcoming auto parts tariffs (effective May 3, 2025). Markets rallied, with the S&P 500 up 9.5% and Nasdaq surging 12%, though later losses of $2.5 trillion reflected ongoing uncertainty. The EU paused $23 billion in retaliatory tariffs, and countries like Japan are negotiating trade deals. Canada, excluded from the pause, faces tensions. Businesses like Hugo Boss are reassessing supply chains, while inflation concerns persist. The pause, ending July 9, 2025, aims to facilitate diplomacy but risks resuming if deals falter, with mixed sentiment on X.
