President Donald Trump has temporarily paused most new tariffs. This move signals a major U.S. tariff strategy shift.
Just a week ago, Trump announced a sweeping global tariff plan. On Wednesday, however, he declared a 90-day pause for most trading partners. The pause excludes China, which faces even harsher penalties.
Trump made the announcement through a post on Truth Social. He claimed that over 75 countries responded positively and avoided retaliation. As a result, they earned a short-term break.
“I have authorized a 90-day PAUSE,” Trump wrote. “During this period, a 10% Reciprocal Tariff will apply, effective immediately.”
However, China will not benefit from this easing. Instead, its goods will now face a massive 125% U.S. tariff. Trump cited disrespect from China toward global markets as a reason for the hike. He insisted that the U.S. would no longer tolerate unfair trade practices.
China responded swiftly. It imposed its own retaliatory tariffs on U.S. imports at a rate of 84%, effective April 10. Meanwhile, the European Union joined in with tariffs between 10% and 25% on American products.
Despite the broad pause, steel and aluminum tariffs remain unchanged. The White House refused to publish the full list of countries receiving the 90-day pause. However, officials confirmed that Mexico and Canada would see tariffs lowered to 10%.
White House Press Secretary Karoline Leavitt emphasized the new global 10% tariff rate. She called it a fair move that promotes balance. Treasury Secretary Scott Bessent added that this was the administration’s intended plan all along.
This U.S. tariff strategy shift brings temporary relief to global markets. Still, uncertainty remains as China and the EU push back.
As negotiations continue, businesses must monitor updates closely. The U.S. tariff strategy shift could evolve further depending on trade talks and political decisions.
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