Following several days of financial market instability, Donald Trump unexpectedly scaled back a significant portion of his tariff plan. He announced a 90-day pause for numerous countries. However, he simultaneously intensified the trade dispute with China by implementing additional duties.

The president explained that the tariff pullback for over 75 nations was prompted by concerns that people were becoming apprehensive. This decision came shortly after a White House spokesperson had dismissed reports of a 90-day pause as "fake news." It also followed considerable political pressure from fellow Republicans and some of the president's wealthy backers.

The US Treasury stated that a general 10% levy on all imports to the US would remain in effect. This meant Britain's situation remained largely unchanged, although the pause provided the government with more time to negotiate a trade deal with Washington.

Downing Street confirmed that Britain would continue talks, aiming to avoid tariffs altogether. A government source indicated that the 90-day pause validated the Prime Minister's decision not to retaliate immediately on imports, emphasizing the value of a calm approach.

US stock markets experienced a significant recovery after Trump's announcement. He stated that the tariff suspension was intended to allow time for negotiations with countries seeking to reduce them. However, he maintained pressure on China by increasing tariffs on Chinese imports. The ongoing trade war between the two major economies continues to pose a risk of economic slowdown.

Trump's press secretary and Treasury Secretary sought to downplay the notion of a reversal, portraying the abrupt shift as a strategic negotiating tactic rather than a response to criticism or market concerns. They highlighted the numerous countries reaching out to the White House to negotiate better trade deals.

The increased taxes on Chinese imports were justified, according to Trump, because China is the most imbalanced economy in modern history and the primary source of US trade problems. Lower 10 percent tariffs would also apply to imports from Mexico and Canada, marking another reversal.

Meanwhile, ministers still hope an economic agreement with Washington can be reached to soften the blow of some of Mr. Trump's tariffs. They are also seeking closer trade ties with other countries. Discussions about a deal with the US have raised concerns about potential concessions the Government might make.