Trump Halts Tariff Hike, Cuts Rate to 10% for 90 Days, Excludes China

President Donald Trump declared a 90-day suspension on the enforcement of increased import duties for numerous countries. This decision followed several days of market instability and economic uncertainty, driven by public and business concerns over the potential economic repercussions of the tariffs. Trump acknowledged that the market volatility had caused some apprehension, influencing his choice to temporarily halt the tariffs.

The White House explained that the 90-day tariff pause would reduce the tariff rate to a uniform 10% for most countries. However, China was not included in this pause, with tariffs on Chinese imports rising to 125%. This differential treatment highlighted the administration's ongoing trade disputes with the region, which have been a central focus of Trump's economic strategies.

The tariff pause announcement came after nearly a week of economic instability, during which markets experienced significant fluctuations. Trump's decision to reverse his earlier position on tariffs was seen as a response to the economic turmoil, aiming to provide relief to businesses and consumers dealing with the uncertainty caused by the proposed tariffs.

Trump's shift in trade policy was not his first change of stance on tariffs. Previously, he had asserted that his trade tariffs were "here to stay" and would "never change." However, the economic fallout and public reaction to the proposed tariffs led him to reassess his position, resulting in the 90-day pause.

The implications of Trump's tariff pause are still developing, but the move has garnered mixed reactions. Some analysts view the decision as a pragmatic response to economic pressures, while others see it as a sign of inconsistency in the administration's trade policies. The pause offers temporary relief for many countries, but the long-term effects on global trade and economic relations remain unclear.