The United States has decided to delay the introduction of large-scale trade tariffs for three months. During this period, a temporary rate of 10% will be in effect, Donald Trump announced on the social network Truth Social.
“I have approved a 90-day PAUSE and temporarily set a reduced tariff — 10%, which takes effect immediately,” he stated.
The reason for this delay was a request from more than 75 countries expressing their desire to discuss U.S. measures regarding foreign trade barriers. According to Trump, these countries refrained from introducing retaliatory restrictions. At the same time, China, as the President emphasized, responded with mirror tariffs. As a result, the tariff for Beijing will be raised to 125%.
Trump first announced plans to introduce large-scale tariffs on April 2. The published list included around 180 countries and territories targeted by the proposed trade restrictions. The harshest measures were aimed at Vietnam (46%), Cambodia (49%), and Sri Lanka (44%). Most other countries were subject to the standard 10% rate. Ukraine was included in this group, while no tariffs were imposed on Russia.
Global financial markets reacted sharply to the White House’s initiative — major stock indices plummeted, setting anti-records.
Many American entrepreneurs who had previously supported Trump expressed concern following his announcements. According to The Washington Post, even Elon Musk personally raised the issue with the President.
Bill Ackman, a well-known investor and billionaire, urged Trump two days ago to implement a 90-day delay. He argued that such actions undermine the business elite’s trust in the administration. “This policy could have extremely negative consequences for millions of ordinary Americans, especially those living on limited incomes and already under financial pressure. This is not what we voted for,” Ackman emphasized.
Trump’s Justification
The escalation of the trade conflict with China was explained bluntly by the U.S. President: “Given China’s blatant disregard for the principles of free trade, I have ordered tariffs on Chinese imports to be raised to 125%.” According to him, this decision takes effect immediately.
A spokesperson for the Chinese Foreign Ministry, Lin Jian, called Washington’s actions economic blackmail. He stated that the U.S. is using tariffs as a pressure tactic, disrupting balance in international trade. “There are no winners in trade wars. We do not seek war, but we are not afraid of it,” Lin added.
Meanwhile, while pressure on China remains, the approach toward other countries has been temporarily softened. According to Trump, the 90-day pause is a response to growing public concern. This appears justified against the backdrop of news reports about panic buying and mass food stockpiling.
“In recent days, the situation looked rather bleak. People started to panic a bit and went overboard,” the President commented.
Nevertheless, as reported by Bloomberg, the motivations behind this step are not limited to concern for the public. The White House was closely monitoring the behavior of the U.S. government bond market. On Wednesday, yields spiked — investors grew wary that foreign players might start pulling out of American debt. As a result, the yield on 10-year bonds saw its largest three-day increase since 2001, and 30-year bond rates exceeded 5% for the first time since October 2023.
At the same time, recession risks in the stock market intensified. According to JPMorgan Chase & Co., the likelihood of an economic downturn has already reached 79%. This is clearly not the scenario Trump promised his voters.
The President found himself in an extremely difficult situation: Americans who brought him back to the White House in hopes of curbing inflation are now facing both rising prices and more expensive loans. According to Bloomberg, Trump made the final decision to suspend the tariffs after a public address by JPMorgan CEO Jamie Dimon. Dimon appealed to international leaders to remain calm and seek mutual trade agreements. He also accused Trump of provoking a recession, pointing out that amid high uncertainty, businesses are being forced to scale back operations.
The situation has become tangled, and analysts note that Trump realized this. Reportedly, his decision was also influenced by the willingness of several countries to make concessions. The President himself made it clear that he does not see this as a retreat: “Sometimes you have to be flexible. I’m capable of that,” he emphasized.