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

NEW JERSEY — 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.

New Jersey Assemblyman Paul Kanitra, a Republican from the 10th District, reacted to the news saying, "With so many countries around the world already having come to the negotiating table and offering to reduce or eliminate their tariffs on the US, it appears as though this first round has accomplished many of its goals. This seems like a smart time to pause and fine tune the efforts further."

Senator Andy Kim said business owners in New Jersey said the pause does not undo what already has happened.

"They said the damage has already been done," Kim said during a Senate press conference. "It is trillions of dollars of damage when it comes to our economy."

"The uncertainty remains because we don't know what's going to happen after the 90 days," Kim said. "We don't know what's going to happen next. He's just making these major decisions on a whim."

"It's going to continue to affect the prices that small businesses in particular are going to be paying, because they're saying just the prospect of additional tariffs down the road, whether it's 90 days or not, is going to keep their prices up," said Kim.

Assemblyman Roy Freiman said, "Clearly, this is better news, but businesses need to be able to plan for the future. This is emblematic of the erratic approach of this administration, which is causing major problems for the business community, not to mention the many constituents in our district who rely on key federal programs, which this administration is cutting."

Assemblyman Greg Myhre, a Republican representing the 9th District, said, “President Trump is an active and engaged President who fights for America. The tariffs showed the world that he speaks and he acts. This pause also shows everyone that he will work with countries to make a better deal. We need a major course correction to rebuild our domestic manufacturing base. Seeing Trump effectively use trade policy tools is far better than the unilateral capitulation of elected officials over the past several decades.”

Rep. Chris Smith, a Republican representing New Jersey’s 4th Congressional District, said the 90-day pause on the tariffs on most countries was positive.

“Look at the market’s reaction. It’s a relief rally,” Smith said. The S&P 500 rose 9.5 percent for the day on Trump’s announcement, and the Dow Jones Industrial Average was up 7.87 percent on Wednesday. “Hopefully that continues."

"Let’s talk to Canada, let’s let our products have access into the European Union,” he said.“I’m absolutely committed to free trade as long as it’s fair trade.”

Smith also supported Trump’s continued tariffs on China saying they must be used to pressure Xi Jinping on human rights abuses, which he called horrific.

“I’ve been pushing since 1989 that all trade with China has to have human rights conditionality,” he said, calling the Chinese government “the most unfair trading partner in the world.”

He said China uses slave labor to produce cobalt for electric vehicle batteries, and cited a variety of Chinese government policies as abusive.

“There’s 35,000 kids working in the mines” that produce cobalt for electric vehicle batteries, and 200,000 adults enslaved, Smith said. “I’m not against EVs I’m dead set against child labor.”

Smith also said China has abused the trade relationship to steal technology and U.S. designs to then produce products cheaply and take advantage of U.S. consumers, citing companies such as Temu and Shein, popular for their discounted items.

“Much of what we have allowed them to steal or sold them has a dual use militarily,” Smith said. That has allowed China to build its strength and threaten not only Taiwan but other countries in its region and ultimately, the United States, he said.

Congressman Frank Pallone said, “Trump’s reckless actions are hurting everyday American consumers and small businesses. Running the government based on an egotistical maniac’s whims is a recipe for an economic recession and a disaster for New Jersey families.”

Congresswoman Bonnie Watson Coleman said, "This is just another example of the Trump Administration’s chaos and incompetence. The uncertainty of this administration’s trade policy has made it impossible for small businesses in New Jersey and across the country to effectively prepare for the future. All of this economic whiplash for the sake of persuading our allies to negotiate with us. They were already our allies. Now they have even less of a reason to trust us, to negotiate in good faith, or believe anything this administration says. Meanwhile, his billionaire buddies can buy access and influence to get exemptions from the worst impacts of this turmoil. This reduces America’s leverage and pushes our allies to cut deals with our adversaries. America is weaker off financially, strategically, and diplomatically because of this incompetence."

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.

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.

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.

"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.

The Associated Press contributed reporting. This is a developing story and will be updated.