Washington, April 14. U.S. President Donald Trump has announced a temporary suspension of broad trade tariffs against a number of countries. For a period of 90 days, a reduced rate of 10% will apply, while tariffs on China, by contrast, will sharply increase to 125%. As explained by the American leader, the decision takes effect immediately.
“I have approved a 90-day PAUSE during which a reduced reciprocal tariff of only 10 percent will apply. This decision takes effect right now,” Trump stated in a post on the Truth Social platform.
Reasons for the Delay: Diplomatic Appeals and Lack of Retaliation
According to the White House, the decision to ease the stance was influenced by appeals from more than 75 countries urging the U.S. to refrain from an immediate tightening of trade conditions. These countries, as the President noted, chose not to take retaliatory action despite the American administration’s harsh tariff rhetoric. This, Trump said, was a strong argument in favor of a temporary suspension.
However, China was made an exception — according to Trump, Beijing “acted differently” and quickly imposed retaliatory duties. As a result, tariffs on Chinese imports have been raised to an unprecedented 125%.
Context: Tariffs Targeting 180 Countries and Negative Market Reaction
Trump’s initiative to overhaul tariff policy was first announced on April 2. A government document listed around 180 countries and territories subject to planned economic restrictions. Among the countries facing the highest rates were Vietnam (46%), Cambodia (49%), and Sri Lanka (44%). Most other states, including Ukraine, fell under the standard 10% rate. Tariff measures were not applied to Russia.
Markets reacted strongly to the news: stock indices of major exchanges fell sharply. Investors feared that trade barriers would slow global economic growth and intensify inflationary pressures.
Investor Concerns and Ally Criticism
Some influential figures in American business, who had previously supported Trump, also voiced concern. According to The Washington Post, entrepreneur Elon Musk personally reached out to the President, expressing doubts about the wisdom of the tariff policy. Another prominent billionaire, Bill Ackman, proposed in an open letter that a 90-day pause be implemented — the very measure that Trump eventually approved.
“If we continue down this path, America will lose the confidence of the business community. The consequences for our citizens, especially low-income individuals, will be catastrophic. This is not the agenda voters signed up for,” Ackman wrote.
Tougher Stance on Beijing
Trump explained the sharp increase in tariffs on Chinese goods by citing Beijing’s blatant “disregard” for the principles of a market economy. According to him, such behavior requires an immediate and forceful response.
“In view of China’s disregard for the rules of global trade, I am increasing tariffs on Chinese imports to 125%. This decision takes effect immediately,” he emphasized.
Beijing’s response was swift. Chinese Foreign Ministry spokesperson Lin Jian described the U.S. actions as an attempt to weaponize economic tools for pressure. “There are no winners in tariff wars. We do not seek conflict, but we do not shy away from it,” the diplomat stated.
Domestic Reaction: Panic, National Debt, and Recession Risks
Meanwhile, within the U.S., news of the tariffs sparked a sharp reaction among the population. In several cities, citizens began stockpiling food and essential goods, fearing a steep rise in prices. Trump himself acknowledged a certain level of public panic.
“The past few days have been grim. People have started acting anxiously — even excessively. It’s beginning to look like panic,” the President commented.
However, the pause in the tariff campaign was not motivated solely by voter sentiment. As reported by Bloomberg, the White House grew seriously concerned about the sharp rise in government bond yields. Spooked by new economic risks, investors began pulling out of U.S. debt instruments. As a result, the yield on 10-year bonds reached its highest level in three days since 2001. Meanwhile, 30-year bond yields exceeded 5% for the first time since October 2023.
At the same time, recession risks increased sharply. According to analysts at JPMorgan Chase & Co., the probability of an economic downturn in the coming months is around 79%. This sharply contrasts with the President’s campaign promises of stability and prosperity.
Turning Point: Intervention by the Banking Sector
According to Bloomberg, a key moment was a public address by JPMorgan CEO Jamie Dimon. He urged leaders of other countries to remain calm and “come to the negotiating table.” The financier expressed concern that Trump’s trade policies could not only suppress business activity but also trigger a global recession.
“Business cannot function under such high uncertainty. We risk losing key drivers of growth,” Dimon stated.
Flexibility as a Strategy
According to sources close to the President, the final decision to temporarily halt the tariff campaign was made once it became clear that many partners were willing to seek compromise. At the same time, Trump does not see this step as a defeat. On the contrary, he emphasizes the importance of tactical flexibility in international policy.
“It’s important to be able to adapt to the situation. I am capable of being flexible when the moment demands it,” the President concluded.