President Donald Trump abruptly suspended import taxes on dozens of countries for 90 days on Wednesday, only hours after they had gone into effect. The stunning reversal came as he intensified his trade conflict with China, leaving Wall Street temporarily jubilant but the business world and international allies puzzled and frustrated by the sudden shift in American trade policy.
The backtrack followed a turbulent week triggered by the tariffs Trump unveiled just days earlier. His announcement had sent global markets into a four-day tailspin, frozen business operations, and stoked fears that both the U.S. and global economies might be headed for a recession.
White House press secretary Karoline Leavitt attempted to portray the sudden policy shift as a deliberate part of a broader negotiation plan. However, critics outside the administration saw it as a hasty retreat in response to financial market turmoil and growing alarm over the destructive potential of Trump’s unpredictable tariff strategies.
“Other countries will welcome the 90-day stay of execution — if it lasts — but the whiplash from constant zig-zags creates more of the uncertainty that businesses and governments hate,” said Daniel Russel, vice president at the Asia Society Policy Institute. “The Administration’s blunt-force tactics have rattled allies, who see the sudden reversal as damage control following the market meltdown, rather than a pivot to respectful, balanced negotiations.’’
The suspension capped off a chaotic stretch in American trade policy. On Wednesday, April 2 — which Trump dubbed “Liberation Day” — he declared sweeping tariffs on nearly every nation, shaking the foundations of the global trade system. By Saturday, a 10% “baseline” import tax had taken effect across most countries.
Then, at midnight on Wednesday, Trump escalated the situation by imposing “reciprocal” tariffs targeting countries he said were engaging in unfair trade practices and contributing to the U.S. trade deficit. These are the tariffs he temporarily rolled back, offering a three-month window for negotiations between affected nations and the U.S. trade team.
However, there was a significant exception: Trump did not back down from his aggressive stance against China. The tariffs on Chinese goods were raised to a staggering 125%, a retaliatory move after Beijing introduced its own tariffs against U.S. products. Meanwhile, the initial 10% tariffs — themselves a major act of economic protectionism — remained firmly in place.
As Trump shifted his trade war tactics, the business community continued to suffer. Earlier tariffs targeting automobiles, steel, aluminum, and imports from Mexico and Canada had already caused considerable disruptions. Companies faced uncertainty, with many delaying or outright canceling investment and hiring decisions while trying to interpret Trump’s evolving strategies.
Some businesses were forced to take immediate action. Carmaker Stellantis cut 900 jobs at its Michigan and Indiana plants after production was halted at two Canadian and Mexican factories, a response to Trump’s 25% tariff on imported cars.
Similarly, Cleveland-Cliffs laid off 1,200 workers at a Michigan factory and a Minnesota iron ore mine due to declining demand from auto manufacturers. The company stated it would resume operations once U.S. auto production rebounded.
Minutes from the Federal Reserve’s March 18–19 meeting, released on the same day as Trump’s reversal, revealed growing concern among central bank officials. Many reported that their business contacts “reported pausing hiring decisions because of elevated policy uncertainty.”
Delta Air Lines also echoed these concerns. In a call with investors on Wednesday, the airline said demand for domestic leisure and business travel had flattened due to fears about global trade. Delta announced it was cutting capacity and would not provide a full-year financial forecast.
“Right now, it’s hard to know how this is going to play out, given that this is somewhat self-imposed,” said Delta CEO Ed Bastian. “I’m hopeful that sanity will prevail and we’ll move through this period of time on the global trade front relatively quickly.”
Despite the 90-day pause, companies continued to seek clarity about Trump’s long-term intentions. For many, the president’s sudden change only increased confusion rather than alleviating it.
Jeff Jaisli, CEO of New Jersey-based importer/exporter Jagro, said Trump’s Truth Social post announcing the suspension had made the situation “even worse” and more perplexing. He was unsure which tariffs applied to which countries and struggled to find accurate guidance.
“We’re scrambling to find correct information and procedures for entries we’re processing NOW in real time,” Jaisli said in an email. He reported finding no reliable details on either the White House website or that of U.S. Customs and Border Protection. Previously, Jaisli had called Trump’s tariff strategy “a grenade that was thrown into the room that’s going to cause chaos.”
Trump’s tariff battle with China has now grown into a full-scale trade war between the world’s two largest economies. Even before the latest spike to 125%, China had imposed its own tariffs on the U.S., totaling 84%.
Ngozi Okonjo-Iweala, director-general of the World Trade Organization, issued a dire warning on Wednesday. She said the spiraling dispute could slash U.S.-China merchandise trade by as much as 80% and severely damage the global economy.
“Of particular concern is the potential fragmentation of global trade along geopolitical lines,” she wrote in a late Wednesday statement. “A division of the global economy into two blocs could lead to a long-term reduction in global real GDP by nearly 7%.”
She also cited WTO projections indicating that the negative fallout could severely affect developing countries. Okonjo-Iweala called on nations to maintain an open global trading framework and resolve their disagreements through cooperation, not confrontation.
Meanwhile, American businesses reliant on Chinese imports are struggling to adjust. Jessica Bettencourt, CEO of Klem’s, a third-generation retail store in Spencer, Massachusetts, said the sudden tariff hike had forced her to halt all fourth-quarter orders for holiday, gift, and toy items. She’s also reconsidering apparel and footwear orders not yet finalized.
Jason Goldberg, chief commerce strategy officer at global marketing giant Publicis Groupe, summed up the prevailing sentiment. “The worst thing is uncertainty and we have massive uncertainty,” he said. “No one can make any moves. Everybody is trying to save as much cash and defer any unnecessary expense. People are getting laid off. Orders are getting cancelled. Expansion plans are being put on hold.”
In the wake of Trump’s latest maneuver, businesses remain caught in a whirlwind of shifting policies and economic anxiety, unsure what to expect next from the White House.