#TariffsPause The #TariffsPause refers to President Donald Trump's announcement of a 90-day pause on most proposed "reciprocal" tariffs, excluding those targeting China. Here's what's happening ¹:
- *Tariff Pause Details*:
- *China*: Tariffs on China remain in place unless Beijing makes "major concessions."
- *Other Countries*: A 10% baseline tariff will apply universally, with country-specific tariffs varying.
- *Excluded Products*: Energy products and certain minerals not available in the US are exempt from tariffs.
- *Market Reaction*:
- Initial market surge: $5.5 trillion added to the US stock market, and Bitcoin climbed above $83,000.
- Mixed signals: Markets are uncertain due to Trump's contradictory statements on tariff policies.
- *US-China Relations*:
- China lifted its 125% tariffs on certain US imports, signaling a potential easing of trade tensions.
- Trump wants China to open its economy, but progress depends on negotiations.
- *Impact*:
- Temporary relief for consumers and businesses.
- Pressure on China in sensitive industries like tech, electric vehicles, and solar sectors.
The pause aims to balance US inflation control with strategic competition, avoiding a full trade war while maintaining pressure on China. However, uncertainty remains, and markets are watching for further developments ¹.