Trump’s Tariff Pause Nears Deadline, Leaving Global Markets on Edge

The world is waiting to see what will happen when United States President Donald Trump’s 90-day pause on his sweeping “reciprocal” tariffs officially ends at 12:01 a.m. Eastern Time on July 9. The uncertainty is rattling investors, governments, and businesses alike, as no one knows for sure how hard the next wave of tariffs will hit.

Back in April, President Trump announced tariffs that were the highest the United States had imposed in over a century. Some levies reached an eye-watering 50 percent on imports. He called it “Liberation Day,” declaring that America would finally get fairer treatment in global trade. The move sent shockwaves through financial markets, triggering a sell-off on Wall Street and turmoil in the bond market. Worried about the fallout, Trump quickly paused the tariffs, giving countries three months to negotiate better trade terms.

Since then, nearly every product entering the U.S. has been subject to at least a 10 percent tariff. Surprisingly, American stocks have not only recovered but surged to new record highs. Inflation has stayed mostly in check. Still, the possibility of tariffs snapping back to their original levels or rising even higher is casting a long shadow over the global economy.

Trade talks have dragged on with only a handful of deals announced. One agreement with Vietnam promises a minimum 20 percent tariff on Vietnamese goods, far lower than the 46 percent that could have taken effect, but is still double the paused rate. Few details have been shared, and it remains unclear whether other countries can negotiate similar terms or avoid steeper penalties.

President Trump has hinted at sending formal letters to countries that have not finalized deals, stating that tariffs could range anywhere between 10 and 70 percent. While he has floated the idea of extending the pause for nations negotiating “in good faith,” he has not said exactly which countries qualify.

For businesses and consumers worldwide, the next few weeks will be critical. If tariffs jump dramatically on August 1, as Trump has threatened, the cost of goods could rise quickly and dent economic growth. On the other hand, more last-minute deals could ease tensions. As one market strategist put it, America’s appetite for tariffs is being tested, and the outcome remains uncertain.