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| Screenshot: CNBC |
World leaders grapple with uncertainty as Trump reverses course on tariffs, raising questions about the future of global trade.
Just hours after President Trump's sweeping "reciprocal" tariffs took effect, sending shockwaves through global markets, he abruptly announced a 90-day pause for countries that have not retaliated. The move temporarily lowers tariffs to a baseline 10% for most trading partners while significantly raising import taxes from China to 125%.
Trump defended his decision, stating that some countries were "jumping a little bit out of line." While allies like Bill Ackman hailed the reversal as a strategic move, others argue that it has only amplified confusion and uncertainty in the global market.
International Reactions
Germany: Friedrich Merz, Germany's chancellor-in-waiting, attributed the pause to European resolve, referencing the EU's approval of retaliatory tariffs on $23 billion worth of goods, set to commence on April 15. Merz cautioned against a trade conflict, advocating for zero percent tariffs in transatlantic trade to resolve the issue.
He highlighted the problems with Trump's tariff policy at home, citing rising inflation, collapsing imports, and major difficulties with exports.
Malaysia: Malaysia's Minister of Investment, Trade and Industry, Tengku Zafrul Aziz, acknowledged the challenges that the volatility creates for ASEAN economies but welcomed the pause. He noted that the developments would be discussed at the Special ASEAN Economic Ministers' meeting.
Zafrul emphasized Malaysia's commitment to collaborating with ASEAN partners to mitigate disruptions, enhance regional economic resilience, and advocate for balanced trade relations. He also stressed the importance of ASEAN unity and regional economic integration, adding that Malaysia would continue to diversify its trade and develop new markets to hedge against current uncertainties.