With the 90-day pause, the average tariff rate will now be 25%. This window opens the door for negotiations between the US and affected nations, says Ray Sharma-Ong, head of multi-asset investment solutions, Southeast Asia, at Aberdeen Investments.
US President Donald Trump authorised a 90-day pause on tariffs following a strong US$39 billion treasury auction that supported the Treasury market.
This results in a substantially lower reciprocal tariff rate. Countries previously subjected to higher reciprocal levies will now be taxed at the 10% baseline rate during this period. China is the exception, with tariffs raised to 125%.
