In a Truth Social post on April 9, 2025, President Donald Trump declared that most countries would be exempt from "reciprocal" tariffs for 90 days, starting immediately. Following days of market turbulence brought on by his initial tariff ideas, this abrupt change occurred.

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The suspension does not apply to China, where Trump increased duties to 125%, escalating the trade conflict between the United States and China. He used China's retaliation against previous U.S. duties as justification, labeling it a "bad actor" in international commerce.

The markets responded quickly, and U.S. stocks surged, with the Dow rising almost 3,000 points and the S&P 500 having one of its best days since 2008. Fears of a recession subsided, and investors exhaled with relief.

During the hiatus, Trump reduced the baseline reciprocal tariff to 10%, allowing more than 75 nations to engage in trade negotiations. It's a versatile maneuver, he explained, adding, "You have to be able to go around the wall."

The decision came after discussions with Republican lawmakers and foreign leaders, as well as tremendous pressure from international markets that saw a trillion-dollar decline in value. Bill Ackman, a billionaire hedge fund manager, had openly called for a halt to help stabilize the economy.

Critics claimed Trump faltered under the instability of the market, while supporters praised it as a "masterful gambit" and evidence of his "Art of the Deal" approach. Trump said that "it’s all going to work out amazing" and denied turning back.

Reactions around the world were mixed: China faced increased tensions, the UK pledged peaceful negotiations, and Canada hailed the reprieve. After early tariff hits, India's markets stabilized, giving it a chance to relax.

Economists are still cautious. While some see the delay as an opportunity for "bespoke" trade solutions, others estimate that if tariffs continue, the GDP will decline by 1% in 2025. An indication of worry was the 10-year Treasury yield's sharp increase to 4.38%.

The story of Trump's tariffs is still divisive. Skeptics warn of lasting harm, while supporters see leverage for future accords. The world is watching to see if this pause changes commerce or only postpones the storm once the ninety days are up.