#TariffsPause #TariffsPause refers to a temporary suspension of tariffs or duties imposed on goods and services between countries. This pause aims to ¹:

- *Promote International Trade*: By reducing costs for consumers and businesses, governments can foster cooperation and economic stability.

- *Alleviate Economic Tensions*: A TariffsPause can help ease trade tensions between nations, creating a more favorable business environment.

- *Facilitate Trade Negotiations*: The pause provides an opportunity for countries to engage in meaningful discussions, potentially leading to more sustainable long-term trade agreements.

Recently, the US government announced a 90-day pause on certain new tariffs, following an initial announcement of a 10% base tariff on imported goods from most countries. The pause excludes China, with which the US has further increased tariffs. The goal is to negotiate tariff rates on a case-by-case basis, but the outcome remains uncertain ².

Tariffs can significantly impact companies, especially those relying heavily on imported goods or international markets. To navigate these changes, businesses should:

- *Monitor Trade Developments*: Stay informed about tariff updates and trade negotiations.

- *Assess Supply Chain Impact*: Evaluate potential effects on supply chains and consider alternative sources.

- *Adjust Business Strategies*: Adapt to changing tariff rates and trade policies.

Some key aspects of tariffs include ³:

- *Types of Tariffs*:

- *Most-Favored Nation (MFN) Tariffs*: The highest tariff rate a country imposes on other WTO members.

- *Bound Tariffs*: The maximum MFN tariff level for a specific commodity line.

- *Preferential Tariffs*: Lower tariff rates applied to specific countries or products.

- *Tariff Impact*: Tariffs can generate revenue, reduce demand for imported goods, and increase demand for domestic products. However, they can also lead to retaliatory measures from other countries.