US President Donald Trump has announced a 90-day pause on his plans for wide-ranging, punishing tariffs on all economies, with the exception of China, which has been slapped with an effective 145% levy on its goods.
In a 9 April post on his Truth Social platform, Trump said the increased tariff on China would take effect immediately, accusing the Asian giant of showing a "lack of respect" to the world's markets. In retaliation, China has hit US products with a 125% tariff.
Trump's decision to row back on the introduction of swingeing tariffs – a 10% "baseline" levy remains in place – has, his update on Truth Social states, been influenced by dozens of countries contacting the US to "negotiate a solution" on areas related to trade barriers, tariffs, currency manipulation and non-monetary tariffs.
Speaking to reporters in Washington DC on 9 April, US Treasury secretary Scott Bessent said the US had been "overwhelmed by the response from, mostly, our allies, who want to come and negotiate in good faith."
"We've had more than 75 countries contact us, and I imagine after today there will be more … each one of these solutions is going to be bespoke, it is going to take some time, and President Trump wants to be personally involved, so that's why we're getting the 90-day pause," he went on to state. If no deals are struck, the tariffs will enter into force on 8 July 2025.
News of the pause was welcomed by stock markets, which surged to recover steep losses from the past few days. Trump's decision has also prompted major economies such as the European Union to readjust their plans, with European Commission president Ursula von der Leyen stating on 10 April that EU countermeasures would be put on hold for 90 days.
"If negotiations are not satisfactory, our countermeasures will kick in", a post on von der Leyen's LinkedIn account states. "Preparatory work on further countermeasures continues," it adds. "As I have said before, all options remain on the table."
The bigger picture around global trade remains complex and challenging, with a host of previously introduced measures, such as 25% tariffs on steel and aluminium, remaining in place. Last week also saw Trump state the US would be "very shortly" announcing a "major tariff on pharmaceuticals." Tariffs on Canada and Mexico, the US' closest neighbours, are unaffected by last week's decision.