19 hours Ago
On April 9, the day that reciprocal tariffs were slated to go into effect, President Donald Trump abruptly announced a 90-day pause on their implementation. These are tariffs that Trump is imposing on most of the world’s countries, based on their trade surplus with the U.S.
, existing tariffs on U.S. exports and Trump’s belief that most countries of the world have taken advantage of the U.
S. in trade matters. Trump’s pause most likely had to do with three factors.
The first was the reaction to the tariffs by the falling stock and bond markets, both negative indicators of stress in the U.S. economy.
Second was the fact that China did not back down from the tariff war and imposed more and higher tariffs on U.S. imports to that country.
Third was the announcement by the European Union, or EU — with which the U.S. trades more than $1 trillion per year — that it would be retaliating against U.
S. tariffs on European exports by implementing its own tariffs on U.S.
goods entering the EU..
