Trump pauses tariffs amid escalating trade war impacts

Following a tumultuous week in financial markets, President Trump has paused 'reciprocal' tariffs, yet the trade war remains a significant concern as many tariffs are still in place, leading to market instability. The average US tariff has surged to 30%, the highest in a century, creating uncertainty that hampers global trade and investment. While some argue that the tariffs may force manufacturing back to the US, critics highlight that the erratic policy implementation disrupts business planning and impacts allies negatively. Treasury Secretary Scott Bessent and other advisors propose a recalibration of trade strategy, suggesting that a weaker dollar could enhance US export competitiveness. Meanwhile, global supply chains are being redirected as manufacturers adapt to the new tariff regime. President Xi Jinping is actively seeking allies as China faces steep tariffs, emphasizing that protectionism is counterproductive.