Overview

• Donald Trump has suspended heightened tariffs for 90 days for most trade partners, reducing them to a uniform 10%, while raising tariffs on Chinese imports to 125%.
• This policy shift follows China's announcement of retaliatory tariffs of 84% on U.S. goods, escalating trade tensions between the world's two largest economies.
• Global markets initially plunged after the tariff measures were introduced, but Wall Street rebounded following the announcement of the temporary pause.
• The European Union has begun implementing retaliatory tariffs on U.S. goods but remains open to a negotiated resolution with Washington.
• Economists and global leaders warn of the potential long-term impacts on global trade, including risks of inflation, reduced growth, and disrupted supply chains.