#TariffsPause Recently, President Trump announced a 90-day pause on certain tariffs, particularly those affecting various trading partners, while maintaining higher tariffs on Chinese imports. This pause aims to stabilize the market and facilitate negotiations with other countries.

**Overview of the Tariff Pause**

- The pause applies to some of the new tariffs introduced on April 2, 2025, but the universal 10% tariff remains in effect for goods from all countries, including the UK.

- Exemptions exist for specific items like pharmaceuticals and microchips, but the overall tariff landscape has shifted significantly.

**Impact on China**

- Tariffs on Chinese goods will increase to 125%, reflecting ongoing tensions and retaliatory measures from China.

- The pause does not alleviate the pressure on China, as the administration aims to leverage negotiations for better trade terms.

**Market Reactions**

- Following the announcement, stock markets experienced a significant rally, with the Dow surging nearly 3,000 points, marking one of the best days for the S&P 500 since 2008.

- Investors reacted positively to the temporary relief from heightened tariffs, although concerns about the overall economic impact remain.

**Global Trade Implications**

- Economists warn that the pause may not significantly alter the trajectory of U.S. trade policy, as many tariffs remain in place, including 25% tariffs on steel, aluminum, and car imports.

- The overall average tariff on U.S. imports is projected to remain historically high, indicating a continued strain on global trade relations.

**Future Considerations**

- The administration's strategy appears to be focused on negotiating better terms with various countries, with ongoing discussions expected during the pause period.

- The long-term effects of these tariffs and the pause on the U.S. economy and global trade dynamics are still uncertain, with some economists predicting a recession may still be on the horizon.