Trump Announces 90-Day Pause On Tariffs: NYC Leaders React

NEW YORK CITY — President Donald Trump on Wednesday abruptly backed down on his tariffs on most nations, announcing a 90-day pause for all trading partners except for China, for which he raised the rate to 125 percent.

Global markets surged on the development, but the precise details of Trump's plans to ease tariffs on non-China trade partners were not immediately clear. It was seemingly an attempt to narrow what had been an unprecedented trade war between the U.S. and most of the world to one between the U.S. and China.

“The 90-day pause on Trump’s devastating tariffs shows the importance of us all standing up for working people against these disastrous economic policies, but it is only a temporary reprieve from the five-alarm fire that still threatens our economy, small businesses, and working families,” New York City Council Speaker Adrienne Adams, a Democrat from the 28th District, said.

“If Trump’s tariffs go into effect, they will threaten our city and county, and working people will see prices skyrocket for groceries, electronics, and other goods while losing their jobs.”

Trump announced the sweeping new tariffs last week, including a 10 percent tax on imports from all countries and higher tariff rates on dozens more.

The announcement prompted financial turmoil, with business executives warning of a potential recession and big declines in the stock market.

“What we’re seeing from the White House isn’t leadership. It’s chaos,” Councilmember Justin Brannan, the chair of the Committee on Finance, said. Brannan is a Democrat from the 43rd District.

“One minute Trump’s tariffs are on, the next there’s a pause. There is no plan, no strategy, just economic whiplash. And working New Yorkers are stuck paying the price."

The S&P 500 was up 7.8% in afternoon trading. It had been down earlier in the morning amid worries about Trump’s trade war and whether it would cause a recession, as economists fear. But it spiked immediately after Trump sent the social media posting that investors have been waiting for.

"It is imperative that Trump’s allies in Congress, especially representatives from New York, use this 90-day pause to work to reverse this economic disaster and protect working people in New York and beyond from further harm," Diana Ayala, a Democratic councilmember from the 8th District and deputy speaker, said.

The Dow Jones Industrial Average was up 2,476 points, or 6.6%, as of 1:35 p.m. Eastern time, and the Nasdaq composite was 9% higher. Investors have been desperate for Trump to ease up on his tariffs, which economists say could cause a global recession and increase inflation.

“New York City’s pension systems are invested broadly, for the long term, and on solid ground to meet all our obligations to our city’s retired teachers, cops, firefighters, and all municipal workers," Comptroller Brad Lander said. "Still, despite our prudence, this level of uncertainty is bad for markets, bad for the economy, bad for investors, and bad for New York City."

"Many of you in the media clearly missed the 'Art of the Deal'," White House press secretary Karoline Leavitt told reporters, in a nod to the Trump’s 1987 memoir and advice book.

"You clearly failed to see what President Trump is doing here. You tried to say that the rest of the world would be moved closer to China, when in fact, we’ve seen the opposite effect — the entire world is calling the United States of America, not China, because they need our markets," she added.

Alexis Tarrazi and the Associated Press contributed reporting. This is a developing story and will be updated.