Trump Hits Pause on Tariffs for Most Nations Except China

Good morning, The trade winds are shifting—Trump hits the brakes on tariffs for most, but China’s still in the storm’s eye. Markets exhaled, oil slipped, and pharma felt the pinch.

Have a sharp eye and a steady hand today!

ECONOMY
Trump hits pause on tariffs for 90 days, except for China

For weeks, President Trump’s escalating tariff policy had Wall Street on edge and global markets in a tailspin. But in a sudden shift on Wednesday, Trump announced a 90-day suspension of reciprocal tariffs for most countries—a move that instantly lifted the S&P 500 by over 7%.

The White House insisted this was all part of a broader, deliberate strategy. Press Secretary Karoline Leavitt said tariffs would now settle at a universal 10%, a major reduction for many nations. Treasury Secretary Scott Bessent echoed that the plan had been in motion all along. But the timing said otherwise. The reversal came after a steep sell-off in U.S. government bonds and mounting fears of a recession sparked by Trump’s aggressive trade stance.

One key exception remains: China. In direct response to Beijing's latest retaliatory tariffs, Trump announced a steep increase in duties on Chinese goods, bumping them up to 125%, after they were already raised to 104% earlier. China, for its part, imposed tariffs totalling 84% on U.S. imports. Meanwhile, the European Union approved 25% counter-tariffs on a range of U.S. goods, set to take effect next Tuesday. However, EU officials noted the measures could be suspended if the U.S. returns to the negotiating table.

Breakdown:

• Bond Market Warning Signs: U.S. Treasury yields spiked, with the 10-year yield climbing to 4.4%, reflecting investor anxiety and rising borrowing costs across mortgages and business loans.

• Oil Drops to 4-Year Low: Crude prices fell to $56 a barrel, alarming U.S. oil executives who had largely supported Trump’s policies until now.

• Pharmaceutical Shockwaves: Global pharma stocks hit after Trump announced plans to tariff pharmaceuticals—a surprise blow to India’s drug industry, which had previously been spared.

• Asian Industry Reassesses: some manufacturers began viewing China more favourably again across Asia's industrial centres, as broader U.S. tariffs made other nations less competitive.

Back in Washington, Trade Representative Jamieson Greer defended the administration’s stance, calling the U.S. trade deficit “a national emergency.” Economists disagreed, arguing trade deficits are a flawed measure of economic health.

For now, Trump’s partial retreat has offered markets a breather. But with China still in the crosshairs and new retaliations brewing, the future of global trade remains deeply uncertain.

ENERGY
Why U.S. refiners won’t spend big on domestic oil

President Trump’s energy drive aims to boost U.S. oil production and cut reliance on imports, especially from Canada and Mexico. But refiners — the ones who process the oil are not on board with making costly changes. Most U.S. refineries are designed to handle heavier foreign crude, not the lighter shale oil the U.S. produces. Reconfiguring plants to handle domestic crude can take years and cost hundreds of millions. Industry leaders, including Chevron, say such investments need long-term policy certainty — something a single presidential term doesn’t guarantee.

Even with tariff threats, refiners aren’t shifting quickly. Light crude yields more naphtha and less diesel or jet fuel, cutting into profits. Refiners like Exxon and Chevron have upgraded select facilities, but most players prefer blending light oil into existing systems a strategy already near its limit. Meanwhile, slowing gasoline demand and growing EV adoption are pushing some refiners to shut down rather than upgrade. Analysts expect U.S. oil output to plateau by the 2030s, while global heavy crude supply keeps rising — weakening the case for large-scale changes.

In short, while Trump wants to power the country with American oil, refiners see little reason to invest big — at least for now.

AI & TECHNOLOGY
YouTube backs bill to tackle AI deepfakes

In a move to curb the misuse of AI-generated replicas, YouTube has thrown its weight behind the revived NO FAKES Act — a bipartisan bill that aims to regulate the unauthorized use of a person’s face, name, or voice in AI content.

Reintroduced by Senators Chris Coons and Marsha Blackburn, the legislation empowers individuals to flag and remove AI-generated imitations, while shielding platforms like YouTube from liability if they act on takedown requests. YouTube praised the bill for balancing innovation with protection, joining existing supporters like SAG-AFTRA and the Recording Industry Association.

The bill addresses previous concerns by refining liability clauses and free speech protections. Meanwhile, YouTube also backs the Take It Down Act, targeting non-consensual AI-generated intimate images.

At the same time, YouTube is expanding its likeness management pilot — a tool that helps creators like MrBeast and Marques Brownlee spot and remove unauthorized AI copies of themselves from the platform.