[CTC] Trump Backs Down on Reciprocal Tariffs for 90 Days

[Arthur Stamoulis]

*Attached chart useful for those having trouble keeping track which tariffs
are which….*


https://www.nytimes.com/live/2025/04/08/business/trump-tariffs-china-stock-market
Trump Backs Down on Reciprocal Tariffs for 90 Days

*President Trump cited new talks with foreign nations on trade in
explaining his reversal. But he said China would not be included, raising
tariffs on its exports to 125 percent after Beijing announced a new round
of retaliation.*

President Trump on Wednesday said he would pause his reciprocal tariffs for
most countries for the next 90 days, backing down on his policy that had
sent markets into a tailspin and threatened to upend global trade. But Mr.
Trump said his break did not include China, announcing he would instead
raise tariffs on its exports to 125 percent after Beijing announced a new
round of retaliation.

Karoline Leavitt, the White House press secretary, said the tariff level
would be brought down to a universal 10 percent — a significant reduction
for many countries.

The reversal, which immediately prompted the S&P 500 to climb over 7
percent in a matter of minutes, followed another whirlwind day. Mr. Trump’s
latest tariffs had hit nearly all U.S. trading partners with new levies and
raised import taxes on Chinese goods to 104 percent. Beijing then announced
additional tariffs on imports from the United States, for a total levy of
84 percent, which went into effect at 12:01 p.m. Eastern.

Shortly before that, European Union member states voted to approve
counter-tariffs
<https://www.nytimes.com/2025/04/09/world/europe/eu-tariffs-trump.html?smid=url-share>
 against the United States that would take effect next Tuesday, its first
response to Mr. Trump’s levies. Documents showed that duties of 25 percent
would be applied to a wide range of goods imported from the United States,
including products as varied as corn and plate glass. The bloc said its
countermeasures “can be suspended at any time, should the U.S. agree to a
fair and balanced negotiated outcome.”

Here’s what else to know:

   -

   *Defending tariffs:* In Washington, Mr. Trump’s trade representative,
   Jamieson Greer, told a congressional committee that the president was right
   to label the country’s trade deficit a national emergency, calling it “a
   manifestation of the loss of the nation’s ability to make, to grow and to
   build.” Many economists have criticized Mr. Trump’s focus on trade
   deficits
   <https://www.nytimes.com/2025/04/09/business/economy/trump-trade-deficit-tariffs-economist-doubts.html>,
   arguing that they are a poor metric for judging the quality of a trade
   relationship.


   -

   *Bonds under pressure:* A sharp sell-off in U.S. government bond markets
   showed concerns about the fallout of a trade war. Yields rise when
   investors sell bonds — pulling down the price of bonds — which can reflect
   worries about inflation, shifts away from U.S. dollar assets or a need for
   investors to raise cash to cover losses on other trades. Rising yields push
   up the cost of borrowing for mortgages, credit cards, business loans and
   many other rates. The 10-year U.S. Treasury yield jumped to around 4.4
   percent, up from below 4 percent at the start of the week.
   -

   *Oil prices tumble:* U.S. oil prices fell to about $56 a barrel on
   Wednesday morning, the lowest level in more than four years. The slide in
   crude prices signals deteriorating confidence in the strength of the
   economy and has spooked U.S. oil executives, many of whom had backed Mr.
   Trump.
   -

   *Asian industry:* In commercial and industrial hubs across Asia,
   businesses grappled with the effects of the levies. For some companies,
   U.S. tariffs have had the unexpected effect
   <https://www.nytimes.com/live/2025/04/08/business/trump-tariffs-china-stock-market#trump-tariffs-china-factories>
    of making China a more appealing place to produce in and buy from, as
   heavy tariffs on other Asian countries have eliminated some motivation to
   set up shops there.
   -

   *Pharmaceuticals:* Stocks of drug companies fell across global markets
   on Wednesday, a day after Mr. Trump reiterated plans to impose tariffs
   specifically on pharmaceuticals. He particularly spooked India’s drug
   industry
   <https://www.nytimes.com/2025/04/09/business/trump-tariffs-pharmaceuticals-india.html?smid=url-share>,
   the country’s most successful exporter, which had been exempted in the
   first round of levies.
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