Trump Announces Tariff Suspension; Markets React with Hesitancy

President Trump surprised markets with a recent announcement on X (formerly Twitter) regarding tariffs. The White House revealed a 90-day suspension of bilateral tariffs, reducing overall rates to 10%. Trade negotiations continue throughout this period. While the move aims for more dialogue, market participants remain uncertain about its long-term implications. Economists and analysts offer mixed perspectives. Some highlight potential relief, while others express concerns over short-term gains masking deeper uncertainties. For instance, Chris Stadele, a corporate analyst, cautions that business decisions based on this temporary relief could face difficulty in the long run. Others like Amarjit Sahota of FX Managing Director question the overall strategy’s soundness, observing market responses as potentially impulsive. Steve Sosnick, chief market strategist at Interactive Brokers, echoes similar sentiment regarding the sudden change from previous firm stance by U.S. officials on tariffs.