In a significant policy reversal, President Donald Trump has announced a 90-day suspension of tariffs for countries that have not retaliated, marking what Nigel Green, CEO of deVere Group, describes as the start of a broader backpedal on the administration’s tariff strategy.
The move follows mounting evidence that economic forces often override political posturing. Markets responded strongly to the news, with the S&P 500 advancing by 6 percent and the Nasdaq Composite rising nearly 8 percent as investors breathed a collective sigh of relief.
The decision, seen as an acknowledgment of the unintended consequences of tariffs, underscores the high cost of trade wars. Tariffs had been widely criticized for fueling inflation, disrupting global supply chains, and imposing higher prices on consumers. The bond market’s reaction was notably more subdued, with the 10-year Treasury yield edging up slightly to 4.37 percent—a reflection of cautious optimism amid lingering uncertainty about long-term policy direction.
In his remarks, Nigel Green noted that the recent pause was not only an admission that the aggressive tariff measures had reached their limits but also a signal that economic fundamentals must prevail over temporary political tactics. He pointed out that markets had long been demanding a return to common sense, with economic stability and clarity taking precedence over policies that risk further destabilizing global trade and financial markets. Green warned that while the pause is welcomed, the structural damage to the dollar’s safe-haven status and global financial leadership would not be remedied overnight.
The administration’s tariff retreat comes amid an environment of heightened volatility as policymakers contend with the consequences of earlier measures that disrupted trade flows and investment. Although the relaxation of tariffs has sparked a strong rally in equity markets, analysts caution that trust, once eroded, is slow to be rebuilt. The recent developments suggest that market participants are repositioning their portfolios in anticipation of further volatility and potential strategic shifts in trade policy.
This episode serves as a reminder that when political decisions interfere with economic realities, the consequences are felt across all sectors of the market. The temporary reprieve provided by the 90-day tariff suspension offers relief but also demands that Washington deliver on a broader strategic reset to restore confidence. The current adjustment, while positive, is likely only the first step in a more prolonged period of market recalibration, where stability and clear policy direction will be essential to rebuilding trust and sustaining economic growth.
