Global markets have rebounded after President Donald Trump’s dramatic tariff pause. However, it’s just the beginning of a new chapter in this economic drama.
Last week, President Donald Trump unleashed sweeping tariffs on nearly every trading partner, dubbing it “Liberation Day.”
The outcome? A global market meltdown, with the stock market index tracker, S&P 500, shedding trillions in value and Asian markets dropping. But now, in a stunning turn of events, President Trump has announced a 90-day pause on tariffs for most countries—except China, which now faces a staggering 125% levy on its exports to the United States.
The United States and China have been locked in a tit-for-tat trade war for years, with China retaliating by raising tariffs on U.S. goods to 84%.
So, what’s the deal? Is this just another example of his unpredictable leadership? Some say the tariff pause is a strategic move to bring other countries to the negotiating table. Others argue it’s a desperate attempt to calm the markets after a week of chaos.
The pause comes after days of financial turmoil triggered by escalating trade tensions. Nations hit with the 10% universal import tariffs, excluding China, have been granted a 90-day reprieve to renegotiate terms; however, the levy will remain in place.
President Trump signaled hope for future deals. He said, “What a day, but more great days are coming.” He vowed that fair deals would be reached with every trading partner, including China.
