President Donald Trump has announced a 90-day pause on the sweeping reciprocal tariffs the administration had previously announced — except for those impacting China.
In a post on social network Truth Social, Trump simultaneously raised the tariff on Chinese goods to 125% “effective immediately” and said the 90-day pause was because most countries did not retaliate with their own tariffs, instead seeking to negotiate terms with the United States.
“Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
The tariffs announced April 2 by the Trump administration have two parts. The first, a flat 10% tariff on most imports, took effect April 5, according to a White House fact sheet. The second — a higher “reciprocal tariff” levied on certain countries, according to the Trump administration — was scheduled to take effect April 9.
The tariff implementation deadline and the announcement of reciprocal tariffs by China and even more recently by the European Union had sent stock market indexes tumbling in recent days. The new announcement sent markets soaring.
The announcement also comes as CEOs had already started taking action with an eye on tariff implementation. Forty-four percent of the respondents to a survey by CEO coaching firm Vistage said they have increased prices since the start of the year, and 51% said they plan to increase prices in the coming months. One big area of concern has been — and will continue to be — on the cost of construction materials and goods, a significant share of which comes from abroad. But if the economy tips into a recession, the odds of which economists say are heightened by Trump’s trade war, commercial real estate dealmaking and activity will inevitably slow, too.
Optimism among small-business owners, meanwhile, slipped in March, according to a survey by the National Federation of Independent Business, with 30% of those survey respondents saying they raised prices in March, the highest response rate in a year.
Source: “Trump announces 90-day tariff pause. Here’s what it means for businesses“
