President Donald Trump announced a surprise 90-day suspension of tariffs for certain countries on Tuesday, marking a tactical shift in his aggressive trade policy while keeping pressure on geopolitical rivals like China.

Key Details of the Pause:

• Duration: 90 days (effective May 1–July 30, 2025)
• Eligibility: Nations that have made “substantial concessions” in bilateral talks
• Exclusions: China, Vietnam, and Mexico remain under full tariffs
• Coverage: 15%–25% reductions on $380B of affected imports

Beneficiary Countries (Partial List):

1. European Union: Auto tariffs facing 10% duties instead of  25%.
2. Japan: Steel/aluminum duties suspended
3. Brazil: Agricultural tariffs paused
4. South Korea: Tech product duties lifted

Market Reactions:

• S&P 500 rose 1.2% on the news
• Euro gained 0.8% against the dollar
• Agricultural futures (soybeans, wheat) up 3–5%

Strategic Implications:

• Carrot-and-Stick Approach: Rewards cooperative nations while isolating rivals
• Negotiation Leverage: Countries must show progress on trade deficits
• Electoral Timing: Pause expires just before GOP convention

Commerce Secretary-designate Robert Lighthizer stated: “This window allows partners to rectify unfair trade practices before permanent measures resume.