A 90-day pause on Donald Trump’s sweeping new tariff plan is set to expire on Wednesday, raising fears of renewed trade tensions and major disruptions across global supply chains.
The former president’s proposal, introduced earlier this year during his campaign, includes universal tariffs of up to 10% on all imports, and significantly higher rates on Chinese goods. Though paused amid global backlash and negotiations, the temporary delay ends this week leaving businesses bracing for impact.
“Uncertainty is already doing damage,” said Elaine Carter, a trade analyst at the Peterson Institute. “Whether the tariffs hit or not, companies are rushing to adjust.”
Over the last three months, U.S. firms have begun relocating operations, shifting suppliers from China to countries like Mexico, India, and Vietnam. Some have also stockpiled inventory or accelerated automation to buffer against potential cost hikes.
Several major retailers and manufacturers, including tech and auto giants, say the looming tariffs have forced them to redesign logistics, cancel contracts, and rethink investment plans.
International leaders, including those from the EU and Japan, have warned that reinstating tariffs could spark retaliation, fracture alliances, and slow global economic recovery.
Despite pressure from business groups and trade partners, Trump has doubled down, claiming the tariffs will “bring jobs back home” and protect American industries.
With the pause set to lift in less than 48 hours, the world is watching to see if the tariffs kick in or if another last-minute negotiation buys more time.
Trump’s original trade war during his first term saw billions in tariffs placed on Chinese imports, triggering global market volatility. Analysts warn this new proposal could be even more disruptive if implemented in full.
