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• President Trump announced a 90-day pause on most new tariffs, except for those on China.
• The global baseline tariff rate has been lowered to 10% for virtually all countries, excluding China.
• Tariffs on goods imported from China will increase to 125%, effective immediately.

Quick Brief

2-Minute Digest

Essential Context

President Trump has introduced a significant shift in his trade policy by announcing a 90-day pause on most new tariffs, with the exception of those imposed on China. This move comes after more than 75 countries reached out to the U.S. to negotiate trade agreements, avoiding retaliatory measures against the U.S.

Core Players

• President Donald Trump – Announced the tariff pause and increase.
• Treasury Secretary Scott Bessent – Clarified the new tariff rates and negotiation efforts.
• White House Press Secretary Karoline Leavitt – Provided additional context on the tariff changes.
• China – Subject to increased tariffs of 125%.
• Over 75 countries – Engaged in trade negotiations with the U.S.

Key Numbers

• 90 days – Duration of the tariff pause for most countries.
• 10% – New global baseline tariff rate for virtually all countries, excluding China.
• 125% – Increased tariff rate on goods imported from China.
• 75+ – Number of countries negotiating trade agreements with the U.S.

Full Depth

Complete Coverage

The Catalyst

“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,” President Trump stated. This decision reflects ongoing tensions between the U.S. and China over trade practices.

The pause on other tariffs is aimed at facilitating negotiations with other countries, as indicated by President Trump’s mention of over 75 countries reaching out to the U.S. without retaliating.

Inside Forces

The move to pause tariffs on most countries, while increasing them on China, highlights the complex and dynamic nature of U.S. trade policy. This strategy allows for a temporary reprieve for global markets and U.S. allies, which had been bracing for the impact of higher tariffs.

President Trump’s personal involvement in these negotiations, as mentioned by Treasury Secretary Scott Bessent, underscores the president’s approach to leveraging his influence in international trade negotiations.

Power Dynamics

The decision to increase tariffs on China significantly while pausing them for other countries demonstrates the U.S.’s assertive stance in its trade relations. This move gives the U.S. leverage in ongoing trade negotiations and reflects the administration’s commitment to addressing what it perceives as unfair trade practices by China.

The cooperation from over 75 countries in avoiding retaliatory measures indicates a willingness among these nations to engage in constructive dialogue with the U.S.

Outside Impact

The announcement has had an immediate positive impact on global markets, with U.S. stocks experiencing a significant rally. The S&P 500 rose by 7% shortly after the news, reflecting market relief from the potential of a global trade crisis.

Economists had warned that the original tariff increases could lead to a severe global recession, but this pause has mitigated some of those concerns for the time being.

Future Forces

The next 90 days will be crucial as countries negotiate with the U.S. to establish new trade agreements. The outcome of these negotiations will determine the long-term impact of these tariff policies.

Potential areas of focus in these negotiations include addressing trade barriers, currency manipulation, and non-monetary tariffs.

Data Points

• April 2, 2025: President Trump announced the initial tariff increases.
• April 5, 2025: A 10% global baseline tariff went into effect.
• April 9, 2025: Higher reciprocal tariffs were set to take effect but were paused for 90 days, except for China.
• 7%: Immediate rise in the S&P 500 following the tariff pause announcement.