From None: 2025-04-10 03:53:00

The United States has announced a 90-day pause on reciprocal tariffs, offering temporary relief from trade tensions. However, Citi economists warn that the overall tariff burden remains high, with minimal economic impact.

Despite the pause, a baseline 10% tariff applies uniformly to all trading partners, increasing effective trade costs.

Citi’s analysis projects a 21 percentage point rise in the average effective U.S. tariff rate compared to the beginning of the year, indicating ongoing tariff escalation.

China faces a cumulative tariff load of over 135%, with specific tariffs on goods and concerns like fentanyl contributing to the escalation.

Sector-specific tariffs persist, affecting industries like autos, steel, and pharmaceuticals, potentially leading to cost and supply chain disruptions.

The rise in effective tariffs leads to inflationary pressure and cost volatility, with the 90-day pause offering a brief window for negotiations but maintaining a high trade cost baseline.

The current pause does not reverse the overall tariff increase, signaling ongoing trade tensions and potential sector-level variations in the impact of tariffs.



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