#TariffsPause
It seems you are asking about the "suspension of tariffs." Here’s a breakdown of what is happening regarding tariffs as of today, April 26, 2025:
Latest tariff situation and suspension:
* Announcement of Comprehensive Tariffs: On April 2, 2025, the U.S. administration announced a "basic" tariff of 10% on imported goods from most countries, with significantly higher tariffs on some.
* 90-day suspension: By April 9, 2025, a 90-day suspension of additional tariffs (beyond the basic 10%) was announced for most countries. This suspension aims to encourage negotiations and prevent retaliatory actions.
* China exemption: It is worth noting that China has been 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:
* Negotiating tool: The suspension is viewed as a preliminary step in negotiations with various trading partners.
* Reduction of reciprocal tariffs: During the 90-day suspension for most countries, a reduced reciprocal tariff of only 10% is in effect.
* Market reaction: The announcement of the tariff suspension led to a rise in U.S. stock markets.
* Bond market impact: Concerns within the Treasury about the bond market's reaction to tariffs reportedly played a role in the suspension decision.
* Continued uncertainty: Despite the suspension for most countries, the long-term trend of tariff policies remains uncertain and depends on ongoing negotiations.
Impact of tariffs (in general):
* Increased costs: Tariffs generally increase the cost of imported goods for businesses and consumers.
* Inflation: These rising costs can contribute to inflation.
* Decline in trade: Tariffs can lead to a decrease in the volume of international trade.