The White House announced a surprise post on X (formerly Twitter) by President Donald Trump that bilateral tariffs have been comprehensively suspended for 90 days while trade negotiations continue, with tariff levels reduced to 10% overall. A White House spokesperson confirmed that “private negotiations will continue” and that in the meantime, tariffs on most sectors and countries will be capped at a base rate of 10%, effective immediately. This temporary measure also includes major trading partners such as Canada and Mexico. The White House said in a separate statement that it was part of a strategic realignment to encourage more constructive dialogue. But the exact nature of the tariffs remained unclear, creating confusion among economists and market participants. Analysts were quick to warn that the move could only provide temporary relief. “While the tariff suspension is good news, it is only for 90 days. This trade war is far from over. The uncertainty could make decision-making difficult for businesses that have been planning months in advance,” said Chris Stadele, a corporate analyst. Stadele also pointed to low trading volumes on Emini S&P 500 futures on CME ahead of the announcement, suggesting investors were hesitant to commit in either direction: “We don’t know yet whether the recovery in the markets is a short squeeze or a real risk appetite.” Related News: BREAKING: SEC Approves Options on Ethereum Spot ETFs! Major Development FX Managing Director Amarjit Sahota echoed similar concerns: “Markets may have responded positively in the short term, but this 90-day delay brings more uncertainty. This looks like a hasty political maneuver rather than a sound economic strategy.” Steve Sosnick, chief market strategist at Interactive Brokers, called the decision a “surprise,” especially given the previous firm stance by U.S. officials declaring the tariffs non-negotiable: “The uncertainty has diminished but not gone away. Companies are now wondering if the tariffs will come back after 90 days.” Economist Nouriel Roubini, often referred to as “Dr. Doom” for correctly predicting the 2008 financial crisis, warned that the Fed was unlikely to act as a buffer for Trump’s tariff maneuvers. “There is a reckoning between Trump’s bottom and Powell’s bottom,” Roubini said, referring to political and monetary thresholds for taking action. “But Powell will wait for Trump to blink first.” Roubini believes the Fed will likely keep interest rates steady, contrary to growing market expectations of multiple rate cuts. *This is not investment advice. Continue Reading: 2008 Economist Who Correctly Predicted the Global Financial Crisis Reveals Market Predictions After Recent Events
