Overview

• President Trump declared a 90-day suspension of increased tariffs for over 75 nations to facilitate trade negotiations, offering temporary relief to global markets.
• China faces a sharp escalation in tariffs, with rates raised to 125%, as Trump accuses the country of disrespecting global trade norms.
• The decision to pause tariffs for most countries follows significant market volatility and rising US bond yields, which increased government debt costs.
• Trump's tariff strategy aims to pressure trade partners into addressing what he deems unfair practices, including non-tariff barriers and currency manipulation.
• Markets reacted positively to the tariff pause, with major indices rallying, though concerns about long-term trade tensions and economic uncertainty remain.