Tariff Timeout: White House Hits Pause on Tariff

In a dramatic shift in trade policy, the White House announced today a 90-day suspension on most new tariffs, signaling a moment of calm in what has been a stormy global trade climate. The move comes as President Trump responds to growing international negotiation requests and domestic concern over potential economic fallout from aggressive tariff hikes.

The pause—effective immediately—puts a hold on the sweeping tariff increases initially set to kick in this week. The decision is seen as a strategic move to allow for negotiations and to ease fears of a spike in consumer prices and market instability.

In his post on Truth Social today, Trump stated “Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable. Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!”

What’s in the Pause?

Under the new directive, imports from most countries will be subject to a baseline 10% tariff during the suspension period. However, neighboring trade partners Mexico and Canada remain exempt thanks to the existing USMCA agreement.

Notably, China is not included in the reprieve. In fact, tariffs on Chinese imports are being raised to a staggering 125%, a clear message that the administration is doubling down on its stance toward what it calls “unfair trade practices” from Beijing.

Why the Sudden Shift?

The 90-day break follows President Trump’s “Liberation Day” declaration last week, where he unveiled a new two-tier tariff system. That plan aimed to enforce a blanket 10% tariff on all imports—except from Canada and Mexico—alongside even higher, targeted tariffs on nations the administration sees as economic adversaries.

But the global response was swift and intense. With over 75 countries raising alarms and concerns mounting on Wall Street, the White House decided to tap the brakes—at least temporarily.

Sources close to the administration say the move isn’t a retreat but a strategic delay, allowing time to hammer out better trade deals. “This isn’t about backing down. It’s about recalibrating,” one official said. “We’re giving the world a window—and a choice.”

Markets React with Relief

Investors welcomed the news. U.S. stock markets bounced back sharply after days of uncertainty, with analysts predicting the pause could help stabilize short-term volatility. Some even called the rebound record-setting.

Businesses across sectors, from tech to agriculture, are also breathing a sigh of relief. Many had been scrambling to adjust supply chains and brace for rising costs. Now, they have three months of breathing room to plan—and hope for resolution.

What’s Next?

Over the next 90 days, the administration plans to begin crafting individualized trade agreements, tailored to each nation’s economic relationship with the U.S. Treasury officials say they expect the first wave of these deals to roll out as early as June.

Until then, the tariff pause is being viewed as both a pressure valve and a negotiation tactic. The message is clear: the U.S. is open for business, but on its own terms.

As the global economy holds its breath, one thing is certain—trade talks just got a whole lot more interesting.