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On April 9, US President Trump made a stunning announcement that he would ease his unfolding international tariff policy for over 75 countries by giving them a 90 day quarantine from heightened tariffs. Throngs of investors celebrated this decision, alongside his continuous fire and brimstone policy towards China, which tremendous increase to global stock markets.
“ For the next 90 days, I have also set a lower reciprocal tariff on trade from 10 percent, and this is in effect now!” Trump exclaimed.
This change comes into power roughly 13 hours after the implementation of stern tariff restrictions for the 56 nations and EU Trump opened high trade barriers to which had triggered a wave of economic havoc and heightened fears of downturn.
What's the current rate of tariffs?
During his “Liberation Day'' speech, Trump so graciously specified the exact date of April 3, announcing the full suspension of trade with his set “hardship zone” countries marked by unfair competitive dealings, stating harsh tariffs would be in place from April 9.
The announced trade policies place an additional baseline reciprocal tariff of 10 percent on all goods entering the US, over which Trump infamously declared would remain unchallenged.
What about China
The United States President previously imposed a 20 percent tariff on Chinese goods, which was subsequently increased by an additional 34 percent on April 3. Subsequently, Beijing retaliated by adding its own 34 percent duty on American goods. In retaliation, Trump set another 50 percent tax, bringing it to 84 percent and later to 104 percent. On April 9, Trump announced a pause but did also announce a 125 percent tariff on the second-biggest economy in the world. China currently has a tariff of 84 percent on US goods.
Are there any more tariffs and exceptions?
These specific tariffs from the US are added on top of already existing ones set for steel, aluminum, and auto imports. The official also maintained that a 10 percent and 25 percent tariff on Canadian and Mexican goods, excluding goods covered under the North American trade agreement, will not see any changes.
It is doubtful that the pharma sector will receive any aid after Trump confirmed his plan to implement tariffs on drug imports.
Why were tariffs put on hold?
For the past days, the US President has faced massive scrutiny from investors and business executives demanding the reduction or elimination of tariffs.
While talking to Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, Trump mentioned he is considering retracting his tariffs and said, “that probably came together early this morning.”
When asked about his sudden change of heart, Trump justified himself saying, “People were jumping a little bit out of line. They were getting a little bit yippy, a little bit afraid.”
Who all are in the exemption list?
As Bessent claimed, over 75 nations did approach Trump, stating they “did not retaliate” on his “strong suggestion,” which in turn is the reasoning behind the alleged decision to suspend the tariffs.
Bessent framed the amendment as yet another win for Trump. While addressing the press, he said the president “created maximum negotiating leverage for himself” while dealing with other countries. Bessent added further that he would be speaking to officials from Vietnam, Japan, India, and South Korea in the coming days.
However, the list of nations receiving tariff exemptions is still unknown. Reportedly, India, who Trump refers to as a “tariff abuser”, is free from the increased surcharges. New Delhi has been negotiating with Washington regarding a bilateral trade agreement in the past several weeks.
How have the stocks reacted
The stocks experienced their fastest growth since 2008 as markets were overtaken by excitement following Trump’s sudden announcement. The S&P 500 Index jumped back up 9.5 percent, propelling from bear market territory, marking the index's most pronounced single-day increase since 2008’s financial crisis. The tech-laden Nasdaq 100 surged 12 percent. Goldman Sachs Group Inc. economists withdrew their predictions for a US recession. Stocks in Asia also recorded their sharpest rise in two years, with Chinese shares advancing on hopes of further stimulus measures.
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