NEW YORK : In a dramatic pivot, US President Donald Trump unveiled a 90-day suspension of reciprocal tariffs on all countries except China, effective immediately, sparking a surge in US stock markets. Announced via Truth Social on Wednesday, the move slashes tariffs by 10% for the period, while Chinese imports face a punishing 125% rate – a steep hike from the prior 104% that had already triggered Beijing’s 84% retaliation on US goods.
Details on rolling out the tariff cuts for non-Chinese trade partners remain murky, leaving businesses scrambling for clarity. The decision follows a brutal market plunge last week, with US stocks shedding $6.6 trillion in value over Thursday and Friday – the worst losses ever recorded. Post-announcement, Wall Street rebounded, hinting at investor relief amid the trade thaw.
Trump’s tariff timeout could reshape global supply chains, offering a lifeline to exporters battered by tit-for-tat levies. Analysts say the 90-day window may signal a broader rethink of US trade policy, with China firmly in the crosshairs as tensions simmer.
GCC Trade Implications
The suspension spells potential upside for the Gulf Cooperation Council (GCC) region, a key US trade partner. With tariffs eased, Saudi Arabia, UAE, and others could see smoother access to American markets, especially in oil, petrochemicals, and tech sectors. The GCC’s $1.1 trillion economy – led by Saudi’s non-oil push – stands to gain if the pause holds, though experts warn China’s exclusion might ripple through global commodity prices, indirectly impacting Gulf exports.
Markets are now eyeing the clock on this 90-day truce, with businesses urging swift guidance on implementation. As Trump doubles down on China, the world watches whether this gamble steadies the US economy – or ignites fresh trade wars