#TariffPause

15 web pages

On April 9, 2025, U.S. President Donald Trump announced a 90-day pause on most of his "reciprocal" tariffs, capping them at a universal 10% for countries except China, where tariffs were raised to 145%. This followed market turbulence and pressure from advisors like Treasury Secretary Scott Bessent, aiming to calm global markets. The Dow surged nearly 8%, and the Nasdaq rose 12.2%, marking its best day in 24 years. The European Union paused its retaliatory tariffs for 90 days, and countries like Japan, India, and the UK began trade negotiations to secure exemptions or deals before the pause ends in July.

However, China faced intensified tariffs due to its refusal to withdraw retaliatory measures, with Beijing imposing 125% tariffs on U.S. imports and halting Boeing deliveries. The World Trade Organization (WTO) noted that while the pause mitigates trade contraction, global merchandise trade is still projected to decline by 0.2% in 2025, with risks of a sharper 1.5% drop if reciprocal tariffs resume. Indian exporters in sectors like gems, footwear, and garments are rushing shipments to the U.S. to capitalize on the lower tariffs. CEOs globally are adopting a cautious "pause" in hiring and investments due to ongoing uncertainty.

Posts on X suggest mixed sentiments: some speculate the pause might end early, while others highlight slow progress in trade deals, with only a fraction of the 75+ countries reportedly negotiating having made headway. Trump has also floated exemptions for steel, aluminum, and auto parts, but plans tariffs on semiconductors and pharmaceuticals, causing volatility in markets and supply chains.

The pause offers temporary relief but leaves global trade on edge, with negotiations and China’s standoff as key variables.