US-China Agree 90-Day Tariff Pause Amid Global Trade Tensions

The recent 90-day pause on US tariffs, particularly with China, has provided some relief but remains a source of uncertainty for businesses and the broader economy. Small business owners, such as board game publishers, express concern that the short duration of the tariff pause prevents confident planning and risks a return to high tariffs, which could jeopardize their operations. Economists note that while the tariff de-escalation reduces the immediate risk of a recession, the remaining tariffs are still high enough to keep economic growth slow and inflation sticky, delaying any potential Federal Reserve rate cuts until at least 2026. The pause has also highlighted the resilience of euro zone bond markets amidst global trade tensions, though vulnerabilities remain due to political and debt challenges in some countries. Overall, the tariff policy shift signals a potential change in US trade strategy but leaves significant economic risks and uncertainties unresolved as the 90-day window nears its end.