Trump pauses tariffs after negotiation talks with global leaders

In the United States, on April 2, 2025, President Donald Trump announced a 90-day pause on reciprocal tariffs against multiple global trade partners, excluding China, which saw increased tariffs of 125%. The decision followed intense discussions with Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, who were present in a critical meeting where Trump expressed the need for individualized negotiations with the affected countries. This decision came after markets reacted negatively to prior announcements of increased tariffs, prompting fears of an impending economic meltdown. The strategy appears to stem from a desire to stabilize market fluctuations and mitigate backlash from traditional allies dependent on trade relations with the United States. Lutnick noted that Trump’s announcement was well-received as other countries began reaching out with offers for fairer trade arrangements. The move to pause tariffs aimed to establish a more constructive dialogue and assure that all negotiations would be tailored to address specific concerns rather than applying a one-size-fits-all approach. However, analysts remain skeptical about the effectiveness of these tactics. Daniel Russel, from the Asia Society Policy Institute, indicated that while other nations might welcome the brief reprieve, the unpredictability of Trump's decision-making creates ongoing uncertainty for businesses. This uncertainty is reportedly exacerbated by previous instances of abrupt policy changes from the Trump administration, heightening the anxiety regarding future trade relations and economic stability. Despite the announcement being termed a positive development by some within Trump's circle, questions linger about its legitimacy and whether it serves to merely deflect criticism from an unsteady market. Furthermore, Trump's insistence on negotiating terms with different nations cast doubt about America’s coherent trade strategy moving forward. The standoff with China, however, remained unresolved, foreshadowing turbulent relations with the powerhouse as the tariffs on Chinese goods increase significantly to protect American interests.