In a surprising move on Wednesday, U.S. President Donald Trump announced a 90-day pause on certain tariffs targeting America’s global trading partners. This temporary relief comes amid growing market turbulence and uncertainty surrounding the administration’s aggressive trade policies. However, while most countries got a breather, China is facing its toughest blow yet.
Trump’s decision marks yet another dramatic turn in his tariff strategy, which has been widely criticized for lacking consistency. In just a week, global stock markets have seen trillions of dollars wiped off due to growing investor unease. The 90-day pause is seen as a chance for the U.S. to renegotiate trade terms with key allies.
What’s Changing?
During this pause, many goods imported into the U.S. will now be taxed at a flat 10% rate. Previously imposed “reciprocal” tariffs on 57 countries, including major economies like the European Union, Japan, and South Korea, will be dialed back to this baseline rate. Countries like Brazil, Australia, the United Kingdom, and Colombia already faced the 10% rate and will continue under those conditions for now.
China’s New Trade Blow
While most countries get some relief, Trump has doubled down on his trade war with China. In response to Beijing’s recent tariff hike—now up to 84% on U.S. goods—Trump fired back by raising U.S. tariffs on Chinese imports to a staggering 125%. These latest increases add to the extensive list of duties placed on Chinese products throughout his presidency.
What About North American Partners?
Interestingly, Canada and Mexico are largely unaffected by this new shift. However, their goods remain subject to 25% tariffs if they fail to comply with the trade rules outlined in the U.S.-Mexico-Canada Agreement (USMCA). Those who meet the agreement’s origin standards remain exempt—for now.
No Change for Autos and Metals
The temporary suspension does not cover tariffs already in place on critical sectors like steel, aluminum, and automobiles. Trump’s 25% tariff on auto parts is still scheduled to take effect on May 3. This indicates that the White House is not yet ready to ease pressure on industries it views as vital to national security and domestic production.
Exempt Sectors and What’s Next
Key industries—such as copper, lumber, semiconductors, pharmaceuticals, and critical minerals—were exempted from the latest tariff wave. These exemptions are temporary, as Trump’s team is preparing detailed investigations that could lead to targeted tariffs on these sectors in the future. Oil, gas, and other energy products will also remain untaxed for now.
What Does This Mean?
Trump’s tariff pause may offer some short-term relief for global supply chains, but the increased pressure on China and selective sector protections suggest the U.S. is not backing down from its trade war stance. Businesses and investors alike will be watching closely over the next three months, hoping for clearer direction and less economic whiplash.
