Trump Announces 90-day Tariff Pause, Excluding Duties on Chinese Goods

On Wednesday, President Trump announced his plans to temporarily halt the country-specific reciprocal tariffs for 90 days, except the tariffs applied to China. Following the announcement, the White House clarified that all countries’ reciprocal tariffs will be brought down to the 10% baseline rate, except for tariffs on China, which currently sit at a rate of 145%, as of the time of this writing.

In retaliation, China has also continued to raise their tariffs on U.S. products to 84% from the previous 34%. This comes after last week’s grand announcement of the widespread global reciprocal tariffs, which seemed to trigger large swings and turmoil in the stock and bond markets. President Trump and Department of the Treasury Secretary Scott Bessent, who is expected to help take a lead in trade negotiations, relayed that more than 75 countries have come to the negotiating table and are willing to secure lower duties. The tariffs placed on Mexico and Canada have remained unchanged from their previous settings, which means United States-Mexico-Canada Agreement (USMCA) -compliant goods will continue to see a 0% tariff, non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff.

As more trading partners come to the table during this time, the Trump Administration’s trade goals of eliminating trade barriers, both on tariffs and regulations, and reversing the U.S. trade deficit seem to remain at the center of negotiations.

USTR Ambassador Greer Testifies Before Senate Finance and House Ways and Means Committees

This week, U.S. Trade Representative (USTR) Ambassador Jamieson Greer made his rounds on Capitol Hill, where he testified on behalf of the Trump Administration’s trade policy agenda before both the Senate Committee on Finance and the House Committee on Ways and Means. Both sets of hearings seemed to feature bipartisan concern regarding the potential adverse effects that President Trump’s reciprocal tariffs may have on the U.S. economy and American businesses and consumers. Republicans highlighted how the Trump Administration’s reciprocal tariffs would create new trade agreements that reduce trade barriers and lower the trade deficits but were wary of potential unintended consequences. Further, Republicans said tariffs would promote protectionist ideals such as domestic manufacturing and job creation.

Democrats criticized President Trump’s tariff policy for alienating the U.S. from longtime allies and a negative impact on American families. Additionally, Democrats raised concerns about President Trump’s use of executive power while implementing his trade agenda. Ambassador Greer defended the Administration’s recent trade actions and said that while there would be no exemptions for U.S. companies, negotiations are underway, and many countries have already expressed willingness to work with the U.S. on the countries’ tariff rates and non-tariff barriers.

Other topics of discussion across chambers included the United States- Canada- Mexico Agreement (USMCA), U.S.- China relations, agricultural trade and exports, U.S.-produced steel and aluminum, domestic pharmaceutical manufacturing, digital trading markets, and the de minimis exemption. You can watch the full Senate Finance hearing here and the full House Ways and Means hearing here.

Senate Ag holds USDA Nomination Hearings On Tuesday, the Senate Committee on Agriculture, Nutrition, and Forestry held a nomination hearing for the Honorable Stephen Vaden, of Tennessee, to be the next Deputy Secretary of Agriculture and Mr. Tyler Clarkson, of Virginia, to be General Counsel of the U.S. Department of Agriculture (USDA). Generally, Republicans and Democrats agreed on the importance of strong leadership at USDA to address the challenges facing rural America. Republicans focused on the nominations of Judge Stephen Vaden and Tyler Clarkson, emphasizing their roles in supporting the USDA's mission and addressing economic struggles in agriculture. Democrats repeatedly criticized the Trump Administration’s blanket tariff policy, the recent funding freezes at USDA, and the necessity for USDA leadership to uphold the rule of law and support rural communities.

Other topics of discussion throughout the nomination included foreign market development and various barriers to trade, the importance of reauthorizing a new five-year farm bill, Supplemental Nutrition Assistance Program (SNAP) work requirements, and rural development. While no date has officially been set to confirm either nominee, it is likely the Agriculture Committee and the full Senate will vote and consider their nominations during the next work period in May after the two-week Easter/Passover recess. You can watch the full nomination hearing here.