#TariffsPause In April 2025, President Donald Trump announced a 90-day suspension of so-called "reciprocal" tariffs for most of the United States' trade partners, with notable exception of China. This decision came after a strong negative reaction from financial markets, which experienced a significant drop in response to the sudden increase in tariffs. 

Context of the Suspension

On April 2, 2025, dubbed "Liberation Day" by Trump, a universal tax of 10% on all imports was instituted, accompanied by higher tariffs for 57 trade partners. This measure caused a brutal drop in financial markets, prompting the administration to reconsider its position. 

On April 9, facing pressure from markets and economists, Trump announced on Truth Social a 90-day suspension of reciprocal tariffs exceeding 10% for all countries except China. Chinese imports were subjected to a minimum tariff of 145%, while imports from other countries maintained a base tariff of 10%. 

Reactions and Implications

This suspension was well received by financial markets, with a notable rise in stock indices. However, analysts remain cautious, emphasizing that U.S. tariffs remain at historically high levels, even after this pause.  

Furthermore, President Trump indicated that he did not intend to reduce tariffs on Chinese imports without obtaining substantial concessions from Beijing, notably increased openness of the Chinese economy. 

In summary, although this temporary suspension of tariffs has brought some relief to markets and the United States' trade partners, trade tensions persist, particularly with China, and uncertainty remains regarding the future evolution of U.S. tariff policy.