US President Trump Announces 90-Day Delay in Tariffs
WASHINGTON, April 10 – United States President Donald Trump announced on Wednesday that he had been considering a 90-day delay in elevated reciprocal tariffs with the country’s trading partners "over the last few days", citing diplomatic engagement and goodwill as factors behind the move.
The Decision
According to Trump, the decision was made after "thinking about it" and "dealing with" Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, who are "very professional". The president added that the delay was written "from the heart" and was a "positive" move for the world and the US.
No Retaliation
Trump noted that the countries affected by the delay had not retaliated "in any way, shape, or form against the US", which contributed to his decision.
Market Reaction
The announcement was met with a historic rally in the markets, with the tech-heavy Nasdaq closing up more than 12 per cent and the Dow gaining over 7.8 per cent after a week of steep losses.
Context
The announcement came on the same day the president increased US tariffs on Chinese imports to 125 per cent. Simultaneously, more than 75 countries were granted a 90-day reprieve from a separate deadline that would have subjected them to tariffs exceeding the 10 per cent baseline, with some facing significantly higher rates.
The Delay
In a post on his Truth Social platform, Trump said the delay was prompted by outreach from affected nations aiming to "negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non-Monetary Tariffs".
Conclusion
The 90-day delay in tariffs is a significant development in the ongoing trade tensions between the US and its trading partners. The decision to delay the tariffs is seen as a positive move by many, as it allows for further diplomatic engagement and negotiation. However, the long-term implications of the delay remain to be seen.
Frequently Asked Questions
Q: What are the tariffs being delayed?
A: The tariffs being delayed are elevated reciprocal tariffs with the country’s trading partners.
Q: Why was the delay made?
A: The delay was made due to diplomatic engagement and goodwill, as well as the fact that affected countries had not retaliated against the US.
Q: What is the impact on the markets?
A: The announcement was met with a historic rally in the markets, with the tech-heavy Nasdaq closing up more than 12 per cent and the Dow gaining over 7.8 per cent.
Q: Will the delay have a long-term impact on trade tensions?
A: The long-term implications of the delay remain to be seen.