US President Donald Trump’s recent 90-day suspension of certain import tariffs has provided only temporary respite, with economists and investors expressing concerns over the enduring risks to the U.S. economy.
Despite the pause, significant tariffs remain on key trade partners, including China, Mexico, and Canada, contributing to ongoing market volatility and uncertainty.
Financial markets have reacted sharply, with the S&P 500 experiencing significant fluctuations reminiscent of the 2008 financial crisis. The Cboe Volatility Index soared to nearly 55, reflecting heightened investor anxiety.
Federal Reserve officials have noted that the tariff pause does not alter the underlying economic fundamentals. Persistent risks, including inflationary pressures and decelerated growth, remain a concern.