#TariffsPause
On April 9, 2025, President Donald Trump announced a 90-day pause on most new tariffs, offering relief to global markets and trading partners. This decision followed significant market volatility and international concern over the initial tariff implementations. Notably, tariffs on Chinese imports were increased to 125%, intensifying trade tensions between the U.S. and China. citeturn0search2
European Commission President Ursula von der Leyen welcomed the pause, viewing it as a positive step toward stabilizing the global economy. The European Union responded by halting its planned retaliatory tariffs for 90 days to facilitate negotiations. citeturn0news14
Despite the general pause, the United Kingdom remained subject to a 10% baseline import tax on most goods, along with existing 25% tariffs on aluminum, steel, and cars. This exclusion led to a 2.92% drop in the FTSE 100, raising concerns about potential economic repercussions in the UK. citeturn0news16
President Trump attributed the tariff pause to widespread apprehension, stating that people were becoming "yippy"—nervous or fearful—about the economic impact. He emphasized that no other president would have undertaken such bold trade measures. citeturn0news15
Following the announcement, U.S. stock markets experienced a robust rebound. The Dow Jones Industrial Average rose by 8%, the S&P 500 by 9%, and the Nasdaq by 12%, reflecting renewed investor confidence. citeturn0news15
The tariff pause has shifted the focus of the trade war primarily onto China, with increased tariffs heightening tensions. China rejected what it termed threats and blackmail from Washington, indicating a firm stance in the ongoing dispute. citeturn0search2
As the 90-day pause unfolds, global markets and policymakers will closely monitor developments, particularly U.S.-China negotiations, to assess the potential for long-term resolutions to ongoing trade conflicts.
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