On April 10, 2025, President Trump announced a surprising 90-day pause on new tariffs, reversing a wave of economic anxiety.

Before the tariff pause, the U.S. economy was burdened by uncertainty in trade policies.

Following the announcement of the tariff pause, Goldman Sachs reverted to predicting a modest 0.5% economic growth for 2025.

Experts like Citigroup's economists warned that while the tariff pause brings temporary relief, underlying risks remain.

The announcement triggered a rally in U.S. equities, showcasing investor relief. However, continued volatility in response to ongoing trade policy changes indicates that overall market sentiment remains fragile amidst the evolving economic landscape.

Future economic growth faces challenges despite the tariff pause. Goldman Sachs' prediction of only 0.5% growth reflects ongoing uncertainty, as the Federal Reserve may adjust interest rates based on developments in trade and economic conditions.

As the U.S. economy adjusts to these shifts, businesses and investors must stay agile. Monitoring negotiations and trade policy changes will be crucial, as they significantly impact economic stability and growth potential moving forward.