Trump’s Tariff Pause Brings Short-Term Relief, Long-Term Uncertainty for Global CEOs

BELGRADE/FRANKFURT/LONDON — U.S. President Donald Trump’s surprise decision to temporarily ease recently imposed tariffs has brought more confusion than comfort to global business leaders grappling with rising costs and volatile supply chains.

While tariffs on many countries were reduced, the steep 25% duties on key imports like aluminum, steel, and cars remain—especially for China, which now faces tariffs as high as 125%. Stocks briefly surged following the announcement, but CEOs remain deeply concerned about what happens once the 90-day pause ends.

European officials responded by suspending €21 billion in countermeasures, though many executives feel left in limbo.

“We’re facing complex and fast-changing trade conditions,” German chemicals giant BASF noted, saying it’s hard to assess the broader impact of a drawn-out trade war on demand.

For companies with global supply chains like Apple, the pressure is immediate. Apple has reportedly flown 600 tons of iPhones from India to the U.S. to dodge China’s tariff hikes. Analysts warn this could spike U.S. iPhone prices.

Chartered financial planner Anita Wright said businesses are unlikely to invest or hire confidently until there’s clarity. “The 90-day pause may seem like relief, but it introduces a dangerous level of uncertainty,” she said.

Retailers like Nike, Adidas, and Walmart are already seeing the effects. U.S. footwear sales are down 9.5% year-on-year since Trump’s return to office. Automakers like Volkswagen and furniture suppliers like IKEA are also bracing for profit hits and possible price hikes.

In Serbia, aluminum and PVC manufacturer Testeral says layoffs may be unavoidable if tariffs persist. Locked into long-term contracts, the company cannot pass on the additional costs and now faces serious risk, its CEO warned.

Despite the temporary rollback, many in the business community remain skeptical that relief will be lasting—and fear the chaos of Trump’s trade policies may only be getting started.