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
California lawmakers have fast-tracked a redistricting plan giving Democrats a potential five-seat gain in Congress, with Governor Gavin Newsom signin...
The U.S. National Guard has been deployed across Washington, D.C. following President Trump’s declaration of a public safety emergency, as federal a...
North Korean leader Kim Jong Un praised troops who fought for Russia in Ukraine, calling them "heroic" during a ceremony honoring soldiers of the army...
The U.S. State Department confirmed that all 55 million visa holders are under continuous review, with potential revocations for security or legal vio...
Adidas executives personally visited a small Indigenous town in southern Mexico to apologize for a shoe design criticised as cultural appropriation, p...
California lawmakers have fast-tracked a redistricting plan giving Democrats a potential five-seat gain in Congress, with Governor Gavin Newsom signing the measure on Thursday to counter Republican efforts in Texas.
The U.S. National Guard has been deployed across Washington, D.C. following President Trump’s declaration of a public safety emergency, as federal authorities continue efforts to reduce crime and secure the capital.
Adidas executives personally visited a small Indigenous town in southern Mexico to apologize for a shoe design criticised as cultural appropriation, pledging future collaboration to respect local heritage.
A powerful eruption at Japan’s Shinmoedake volcano sent an ash plume more than 3,000 metres high on Sunday morning, prompting safety warnings from authorities.
According to the German Research Centre for Geosciences (GFZ), a magnitude 5.7 earthquake struck the Oaxaca region of Mexico on Saturday.
The UK is gearing up for Exercise Pegasus 2025, its largest pandemic readiness test since COVID-19. Running from September to November, this full-scale simulation will challenge the country's response to a fast-moving respiratory outbreak.
Honduras has brought back mask mandates as COVID-19 cases and a new variant surge nationwide.
Kuwait says oil prices will likely stay below $72 per barrel as OPEC monitors global supply trends and U.S. policy signals. The remarks come during market uncertainty fueled by new U.S. tariffs on India and possible sanctions on Russia.
California lawmakers have fast-tracked a redistricting plan giving Democrats a potential five-seat gain in Congress, with Governor Gavin Newsom signing the measure on Thursday to counter Republican efforts in Texas.
The U.S. National Guard has been deployed across Washington, D.C. following President Trump’s declaration of a public safety emergency, as federal authorities continue efforts to reduce crime and secure the capital.
North Korean leader Kim Jong Un praised troops who fought for Russia in Ukraine, calling them "heroic" during a ceremony honoring soldiers of the army's overseas operations.
The U.S. State Department confirmed that all 55 million visa holders are under continuous review, with potential revocations for security or legal violations.
Bangladesh and Pakistan have agreed to allow visa-free travel for holders of diplomatic and official passports, marking a major step in restoring relations after decades of restrictions.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment