Trump pledges U.S. military support to protect Qatar
U.S. President Donald Trump has signed an executive order pledging U.S. military support to defend Qatar if it comes under attack, following last mont...
You’ve probably seen the headlines: sweeping tariffs, surprise pauses, and a 90-day ticking clock that could reshape global trade. But what exactly is Trump’s 90-day pause — and why does it matter for the world economy? Let’s break it down
What is the 90-day pause?
On 2 April, former U.S. President Donald Trump declared “Liberation Day”, announcing new reciprocal tariffs on almost all U.S. imports. The policy shocked global markets. But within a week, a partial 90-day pause was introduced to ease the fallout.
The pause, announced on 9 April, temporarily suspended the steepest tariff hikes for 59 trading partners, including the EU, Vietnam, and Sri Lanka, until 9 July. However, a universal 10% baseline tariff remained in place on nearly all imports, including those from allies such as Australia and the UK.
“The pause offers a temporary reprieve, but it doesn’t undo the structural shift in U.S. trade policy,”
— Clark Packard, trade fellow at the Cato Institute
So, what stayed and what changed?
China, however, saw no relief. Its tariffs jumped from 104% to 125%, plus 20% more for fentanyl-related goods.
“This is a full-scale break from the post-WWII free trade order — and the pause only slows the reckoning,”
— Lori Wallach, global trade expert
What about the global impact?
Trump’s tariff reset could trigger a second wave of inflation, disrupt supply chains, and raise consumer prices, especially if negotiations fail and full tariffs kick in after 9 July.
“The threat of tariffs, and the uncertainty around them, causes capital to sit on the sidelines,”
— Clark Packard
Vietnam, for instance, exports to the U.S. make up about 30% of its GDP. A 46% tariff could devastate its economy.
The UK, which exports $9bn in cars to the U.S., now faces a 25% tariff on those vehicles.
The EU could see a 50% tariff if it doesn’t strike a deal, prompting fears of a tit-for-tat trade war.
“If this happens, the EU will likely feel compelled to respond in kind — potentially sparking a full trade war,”
— Gavekal Research, investment adviser
What’s the legal picture?
The U.S. Court of International Trade ruled in May that many of Trump’s tariffs were illegal. A federal appeals court temporarily reinstated them, but a final ruling is pending.
“There’s real legal risk that the foundation of this trade policy could collapse in court,”
— David Murphy, customs and trade attorney
What could happen next?
Trade analysts expect three possible outcomes by the July deadline:
1. Full deals are reached (like with Vietnam or the UK) — removing or lowering tariffs.
2. No deal, but baseline 10% tariffs remain — continuing uncertainty.
3. No deal and no goodwill — full tariffs (up to 50%) kick in.
“Some countries will bend. Others will fight back. Either way, we’re entering a new chapter in global trade,”
— Patrick Childress, international trade lawyer
Final thoughts
Trump’s 90-day pause wasn’t just a delay, it was a warning. While some nations may strike bilateral deals, others face a steep cliff edge. As the global trading order reshapes, unpredictability may be the only constant.
“Tariffs are back — and this time, they’re not going away quietly,”
— Bloomberg Economics
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