Where tariffs stand after Trump’s partial pause : NPR

The recent events in the business and market landscape have been turbulent, starting with President Trump’s announcement of extensive tariffs and culminating in a sudden halt on most of them.

Approximately 12 hours after the implementation of tariffs on numerous U.S. trading partners, Trump declared on Wednesday that he would suspend most of them for a 90-day period.

In a post on Truth Social, Trump cited that “more than 75 countries have reached out to negotiate a solution to trade-related issues.” He attributed the pause to the lack of retaliatory actions by these countries against the U.S., despite his strong recommendation.

Throughout the week, Trump had been adamant about not halting the country-specific tariffs, despite mounting pressure from prominent investors. Although the White House had initially dismissed the notion of negotiations, Trump later acknowledged that “a lot of times, it’s not a negotiation until it is.”

Trump also acknowledged the unease in the markets, stating that the declining trends were causing anxiety among people.

The temporary pause on increased tariffs allows the White House a three-month window to engage in discussions with individual nations. Key officials now assert that this was Trump’s strategic approach from the beginning, rather than a reaction to market turmoil.

See also  ASB initiative aims to optimise farm land

“Many in the media have overlooked the art of the deal,” stated White House press secretary Karoline Leavitt, referencing Trump’s book title from 1987. She emphasized that the President’s actions were not fully understood by the media.

While the financial markets and global economy have experienced a sense of relief, the repercussions of the trade war are still lingering and unresolved.

Trump has reinforced tariffs on China, elevating them to a significant 125% immediately, citing China’s lack of regard for global markets.

Moreover, the initial 10% baseline tariff on all imports remains intact, along with the pre-existing 25% tariffs on steel, aluminum, vehicles, and auto parts.

Here’s an overview of the evolving situation and its implications.

Temporary Halt 

The country-specific tariffs announced by Trump last week have been paused for 90 days, postponing their implementation to early July.

Speaking to the press on Wednesday, Trump defended his reversal as a demonstration of flexibility.

He attributed his decision to the market turbulence, especially in the bond market, indicating that the resolution emerged early that morning after several days of contemplation.

The midday announcement of the pause was met with approval from Wall Street figures.

Bill Ackman, a billionaire hedge fund manager and Trump supporter, transitioned from criticizing Trump’s approach to praising it on social media, hailing the outcome as “brilliant” and “the perfect setup for trade negotiations over the next 90 days.”

“There are better and worse ways of handling our problems with unsustainable debt and imbalances, and President Trump’s decision to step back from a worse way and negotiate how to deal with these imbalances is a much better way,” remarked Ray Dalio, founder of Bridgewater Associates, in a tweet, expressing hope for a similar outcome with China.

The temporary halt also brought relief to the U.S. markets initially. On Wednesday, the Dow Jones Industrial Average surged nearly 8%, the S&P 500 climbed over 9%, and the Nasdaq experienced a rise of more than 12% — its most significant one-day surge