Trump pauses tariffs to negotiate trade deals

In the United States, President Donald Trump announced a significant pause on higher tariffs that were set to be part of his 'reciprocal' trade policy. This pause is intended to last for 90 days and aims to facilitate negotiations with trading partners that have not yet retaliated against U.S. tariffs. White House senior trade counselor Peter Navarro emphasized that this decision reflects progress in the ongoing trade discussions, highlighting the objective of reducing the U.S. trade deficit whilst negotiating more favorable terms with other countries. During an interview shortly after the announcement, Navarro reiterated that the pause represents a key moment in which negotiations can move forward effectively. He stated, 'We are at a place now where we have a broad-based 10% global tariff while we negotiate over the next 90 days with all these countries.' This statement indicates the administration's strategy of maintaining a firm tariff policy while simultaneously opening the door for dialogue to achieve trade reforms. This approach comes as part of a broader framework that includes addressing not only tariff rates but also non-tariff barriers, which are seen as contributing factors to the trade imbalance faced by the U.S. Navarro expressed that the reciprocal tariffs were essential for prompting other nations to engage in talks about lowering their tariffs and improving trade conditions. He mentioned that many countries have already shown a willingness to negotiate in response to the tariff threats. The administration's decision to pause the higher tariffs is indicative of Trump's desire for personal involvement in the negotiations, aiming for a resolution that aligns with America’s trade goals. The temporary halt is expected to allow the U.S. to engage in more productive discussions, which could lead to long-term changes in how international trade is handled. As negotiations proceed, the U.S. will apply a lower 10% tariff rate during the paused period as a sign of goodwill towards potential trading partners, setting the stage for more collaborative trade relationships moving forward.