What’s behind White House's decision to halt tariffs? NYT explains

The administration of US President Donald Trump has decided to temporarily suspend some of the new trade tariffs for a 90-day period, citing concerns over the risk of a new financial crisis that, unlike those of 2008 and 2020, could directly be linked to the actions of the White House.

This information was reported by The New York Times (NYT), citing sources familiar with the matter, per Caliber.Az.

As noted by the publication, the White House is worried about the potential for further collapse in global stock and commodity markets, along with the possibility of panic among financial professionals that could spiral out of control and severely harm the economy. US Vice President JD Vance and Treasury Secretary Scott Bessent argued that Washington's strategy in the trade war must be carefully planned, with the goal of isolating China and creating the appearance that the US is resolutely tackling the trade deficit.

According to sources, most members of the US administration were informed about the change of course at the last minute. On the morning of April 9, Trump had indicated that he did not plan to abandon his original plan. However, by the evening of that same day, he announced a 90-day pause in implementing new tariffs. Jamison Greer, the US trade representative, reportedly learned about Trump’s decision while addressing the House of Representatives, where he was defending the president's initial plan.

US Treasury Secretary Scott Bessent played a crucial role in persuading Trump to delay the increase in tariffs on imports.

According to sources, during a closed-door meeting with Trump, Bessent emphasized the need to set a clear long-term goal for tariff policy and urged the president to focus on negotiations with other countries. Trump, according to the sources, disagreed, suggesting that "the pain would be short-term." However, Bessent pointed out that, from the perspective of financial markets, the repercussions could last "many months."

On April 2, Trump had announced the imposition of tariffs on products from 185 countries and territories, excluding Russia. The universal tariff of 10% came into effect on April 5, while the individual tariffs took effect on April 9. In addition, the US administration imposed a 25% tariff on all imported vehicles beginning April 3.

On April 9, Trump confirmed that he would suspend the tariff increase for 90 days for countries that were willing to negotiate. These countries would be subject to the 10% import tariff. Bessent emphasized that the suspension would apply to both Canada and Mexico. Simultaneously, the US leader raised tariffs on Chinese goods to 125%.