Trump Suspends Global Tariffs for 90 Days in Bid to Calm Financial Markets
In a stunning policy reversal, former President Donald Trump suspended sweeping global tariffs just 13 hours after implementing them, sparking a major rally on Wall Street but leaving global markets and U.S. trade partners reeling with uncertainty.
WASHINGTON: In a stunning policy reversal, President Donald Trump suspended sweeping global tariffs just 13 hours after implementing them, sparking a major rally on Wall Street but leaving global markets and U.S. trade partners reeling with uncertainty.
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The 90-day suspension applies to newly announced import taxes on dozens of countries, part of a broader trade crackdown that escalated Trump’s economic conflict with China. While the White House framed the move as a calculated negotiating tactic, critics argue the sudden U-turn reveals a reactive administration pressured by plunging markets and fears of a recession.
Trump Tariff Reversal Follows Global Market Chaos
Last week, Trump announced a new wave of tariffs that sent shockwaves through financial markets and triggered a four-day global sell-off. Businesses and investors scrambled to assess the impact of what was seen as a dramatic pivot away from free trade, raising concerns of a global economic slowdown.
On April 2 — which Trump dubbed “Liberation Day” — he introduced a 10% “baseline” tariff on imports from most countries, effective April 5. At midnight Wednesday, the former president escalated matters by imposing steep “reciprocal” tariffs on nations accused of exploiting the U.S. trade system.
But in a surprise shift just hours later, the Trump administration halted those new reciprocal tariffs for 90 days, offering trading partners time to negotiate revised trade agreements. China, however, was excluded from the reprieve — its import tariffs were raised to a staggering 125% in retaliation for its own counter-tariffs.
Business Leaders, Allies Alarmed by Trade Policy Whiplash
Karoline Leavitt, Trump’s press secretary, defended the abrupt policy change as part of a grand strategy. “The president is using every tool to get better trade deals for Americans,” she said.
However, international observers and U.S. businesses voiced concern over the unpredictability of Trump’s trade tactics. “The whiplash from constant zigzags creates more of the uncertainty that businesses and governments hate,” said Daniel Russel, vice president at the Asia Society Policy Institute.
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Global allies interpreted the pause not as strategic finesse but as damage control. “The administration’s blunt-force tactics have rattled allies,” Russel added, warning that the U-turn undermines trust and global economic stability.
What Happens Next?
The 10% baseline tariffs remain active, solidifying a significant shift toward protectionism in U.S. trade policy. While the temporary suspension of the harsher tariffs offers a brief window for diplomatic talks, the underlying tension—especially with China—continues to escalate.
As the 90-day countdown begins, markets, businesses, and foreign governments will be watching closely to see whether this latest maneuver signals a path toward stable negotiations—or more unpredictable policy swings.
