#TariffsPause The 90-day tariff pause brings short-term relief and more uncertainty for businesses

The abrupt change of course by President Donald Trump regarding the broad tariffs imposed on dozens of countries brought some temporary relief to the stock markets, but still left U.S. businesses and trading partners struggling to figure out what will come next.

After days of market turmoil and threats of an escalation of trade wars, Trump made a surprise announcement on Wednesday to implement a 90-day pause on his reciprocal tariffs that were announced last week and triggered a stock market sell-off and increased fears that the United States could fall into a recession.

A general tariff of 10% will remain in effect for all countries included in last week's reciprocal tariff announcement, except for China, whose tariff rate was increased to 145% in an increasingly intense trade war that Beijing has insisted it will "fight to the end."

The 10% rate, while significantly lower than Trump's original announcement, remains a substantial increase that economists warn will raise costs for businesses and ultimately be passed on to consumers.

Other tariffs, such as a tax on imported steel and aluminum, a 25% levy on cars and their parts, and 25% tariffs on imports from Canada and Mexico, remain in effect, with plans to apply more to specific products like pharmaceuticals, lumber, and computer chips.

This also leaves businesses guessing what trade policy will ultimately emerge from the White House, with negotiations taking place with dozens of countries at once in an economy that relies on global supply chains for all kinds of products.