#TariffsPause ⏸️
The recent U.S. tariff pause, announced on April 9, 2025, reflects a strategic shift in trade policy.
⏯️ President Trump halted higher "reciprocal" tariffs on most countries for 90 days, reducing rates to a universal 10%, except for China, where tariffs escalated to 125% due to retaliatory measures.
⏯️ This pause aims to foster negotiations with over 75 nations, addressing trade imbalances, currency manipulation, and non-tariff barriers.
⏯️ The move followed market turmoil, with stock indices like the S&P 500 surging 7-8% post-announcement, though volatility persists. Economists warn the 10% baseline tariff, still in place, could raise prices and slow global growth, with Bloomberg estimating a U.S. average tariff rate of 24%, the highest in a century.
⏯️ China's intensified trade war, with 84% tariffs on U.S. goods, risks a $466 billion trade drop. While the pause offers temporary relief for nations like Vietnam and the EU, uncertainty looms as negotiations unfold.
⏯️ The World Trade Organization forecasts a 0.2% decline in global merchandise trade for 2025, with North American exports potentially falling 12.6%.
⏯️ This policy pivot underscores a delicate balance between protectionism and global economic stability.
