Trump Temporarily Halts Tariffs, Excluding China
US President Donald Trump has announced a 90-day pause on tariffs, effective immediately, in a move that has sparked a rally in US stocks and global markets. However, the suspension does not apply to China, where tariffs will rise to 125%.
The decision appears to narrow the ongoing US trade war from a global conflict to a direct economic showdown with China. While exact details remain unclear, the move signals a potential shift in Trump’s trade policy ahead of key negotiations.
Global and Irish Reaction to Tariff Suspension
Ireland Welcomes Tariff Relief
Tánaiste Simon Harris called Trump’s decision a “relief for Irish businesses” following a meeting with US Commerce Secretary Howard Lutnick in Washington. Harris described the discussions as “timely and substantive,” emphasizing Ireland’s role in promoting constructive trade relations between the US and EU.
EU Leaders Cautiously Optimistic
European leaders reacted cautiously, with Germany’s Friedrich Merz suggesting the pause reflects the success of a unified EU trade strategy. Meanwhile, Polish Prime Minister Donald Tusk urged Europe to “make the most of the next 90 days” to strengthen transatlantic trade ties.
It remains uncertain whether the EU will be exempt from the previously announced 10% tariffs, leaving businesses awaiting further clarity.
White House Defends Trump’s Strategy
White House Press Secretary Karoline Leavitt framed the tariff pause as a negotiating tactic, stating:
“President Trump created maximum leverage. The world is calling the US, not China, because they need our markets.”
However, critics like Senate Democratic Leader Chuck Schumer slammed the move as “chaotic and unpredictable,” arguing it harms American consumers and businesses.
Market Reactions and Economic Impact
- US stocks surged following Trump’s announcement.
- Treasury Secretary Scott Bessent claimed the tariffs forced 75+ countries to negotiate, despite market confusion.
- China’s retaliatory tariffs were criticized by Trump as “disrespectful to world markets.”
Irish Concerns Over Trade War Fallout
Taoiseach Micheál Martin previously warned that tariffs were already hurting Irish businesses, highlighting the need for stability in US-EU trade relations.
What’s Next?
With a 90-day window before tariffs potentially resume, the focus shifts to:
- US-China trade negotiations
- Potential EU exemptions
- Long-term impacts on global supply chains
As markets adjust, businesses worldwide await further developments in Trump’s evolving trade policy.
