Trump Hits the Brakes

In a surprise move, President Trump has signed an executive order extending the suspension of tariff increases on Chinese goods for another 90 days. The decision came just hours before the previous truce was due to expire, averting the imposition of duties that could have reached 145%. Unlike his earlier “Liberation Day” tariff surge, this time Trump applied selective easing — reducing pressure on most trading partners while keeping China firmly under the trade spotlight.

The de-escalation steadied markets, aided by inflation data that softened concerns of runaway prices. Wall Street responded with relief, yet the core tariff structure remains both entrenched and punitive. Even with this rollback, the average US household is expected to forfeit US$4,000–$5,000 annually in purchasing power through hidden import taxes. In effect, the pause secures political leverage at the expense of persistent inflation and fragile growth. It is less a truce than a tactical retreat.

For Australian consumers and exporters, the US pause offers a short-lived reprieve. Our baseline 10% tariff remains in place, but the ASX 200 surged on the news. Still, access to US markets remains uncertain — the extension does not guarantee lasting relief, and Canberra is preparing for possible post-pause renegotiations. Businesses dependent on uninterrupted US trade should view this as another episode in an ongoing cycle of volatility rather than a resolution.

Bullion investors will focus on the underlying message: this is not policy, but positioning. It signals future uncertainty, not stability. For gold and other hard assets, the outlook is bullish — prolonged tariff instability reinforces the inflation narrative, political risk weighs on the US dollar, and any further easing without structural change is likely to drive demand for safe-haven assets. In an era of political theatre, lasting value lies in what you hold, not in what is promised.