On August 11, 2025, President Donald Trump’s administration made headlines by announcing a 90-day suspension of planned tariff escalations on Chinese goods, deferring the expiration date to November 10, 2025. This move, enshrined in Executive Order 14334, temporarily reduced the U.S. reciprocal tariff rate on Chinese imports from 34% to 10%, with China agreeing to hold its own tariffs on U.S. goods steady at 10%. The decision, which came at a critical juncture in the ongoing U.S.-China trade war, has sent ripples through global markets and industries, with both immediate relief and lingering uncertainty shaping the economic outlook.
For businesses and investors, the short-term impact of the tariff suspension was palpable. U.S. retailers, in particular, breathed a sigh of relief as they prepared for the all-important holiday season—a period that accounts for a staggering 25% of annual retail sales. With the threat of tariffs on Chinese goods previously poised to skyrocket to 145%, and U.S. exports facing a potential 125% levy, the pause offered a crucial window for companies to manage inventories and pricing strategies without the specter of sudden cost hikes looming overhead. Chinese manufacturers, who had been bracing for a 200% tariff on electronics and machinery, similarly welcomed the reprieve, which helped stabilize supply chains stretched thin by years of trade friction.
The market’s reaction was swift and optimistic. According to reporting by AInvest, Asian stock indices such as Japan’s Nikkei and Australia’s ASX 200 surged to record highs, while European markets like the FTSE 100 and CAC 40 also edged upward. In the United States, the S&P 500 and Nasdaq both posted gains, reflecting investor confidence that the temporary truce would stave off immediate disruptions. This sense of stability was further reinforced by China’s decision to ease export restrictions on rare earth minerals—materials essential for U.S. semiconductor and green energy industries. The Peterson Institute for International Economics, however, offered a note of caution: despite the headline reduction, the effective U.S. tariff rate on Chinese goods remained a hefty 51.1%, thanks to the layering of various duties, including those related to Section 301, Section 232, and fentanyl-related products.
Yet, beneath the surface, the move revealed a fragile equilibrium rather than a true resolution. The U.S.-China trade war, now entering its seventh year, has become a story of cyclical escalations and temporary pauses, rather than meaningful breakthroughs. The core issues—U.S. concerns over intellectual property theft, China’s industrial subsidies, and a persistent $295.4 billion trade deficit—remain unaddressed. Without a comprehensive agreement, the November 2025 deadline looms large, threatening to reignite hostilities that could once again roil global supply chains.
This uncertainty is further compounded by the evolving geopolitical landscape. The U.S. recently imposed new Section 232 tariffs on copper and steel derivatives, while China responded with export controls on dual-use technologies. These targeted measures signal a shift from broad-based tariffs to more strategic, sector-specific actions, reflecting a growing focus on national security and technological sovereignty. For investors and multinational companies, this means that supply chains are no longer just about cost savings—they have become flashpoints in a broader contest for economic and technological dominance.
One notable consequence of the ongoing trade tensions has been the reexamination of the so-called “China+1” strategy, in which companies diversify manufacturing to countries like Vietnam or India to mitigate risk. However, as AInvest points out, higher U.S. tariffs on goods from Southeast Asia—such as the 200% tariff on Vietnamese textiles—are narrowing the cost advantages of moving production out of China. In fact, China’s effective production costs remain 12-15% lower than its regional competitors, even after accounting for tariffs. This has prompted some firms to consider a “China-adjacent” approach, establishing regional hubs in countries like Malaysia or Indonesia, rather than relocating en masse.
For investors navigating this turbulent environment, the advice is clear: agility and diversification are paramount. Sectors such as semiconductors and advanced manufacturing stand to benefit from China’s rare earth exports and U.S. export controls on cutting-edge chips. Logistics and supply chain management companies are poised to capitalize on the need for more flexible, diversified routes. Meanwhile, U.S. agricultural exporters could find renewed demand if trade imbalances are addressed, particularly for soybeans and corn. To hedge against geopolitical volatility, traditional safe havens like gold and utilities retain their appeal, while currency diversification—especially into the Chinese yuan and Australian dollar—may offer additional protection if tariffs on Southeast Asian goods persist. Long-term, industries aligned with global trends such as renewable energy, AI, and data security are seen as relatively insulated from the trade dispute’s fallout.
Yet, the impact of Trump’s trade policy is not confined to international markets—it’s being felt closer to home as well. In Canada, a recent Wahi survey revealed that nearly half (46%) of respondents have no plans to buy a home within the next two years. Among those still considering a purchase, an overwhelming 79% said U.S. tariffs are not influencing their decision, while just 16% reported being somewhat or much less likely to buy due to strained trade relations. Only 4% said the trade climate made them more likely to purchase. "Some homebuyers will definitely be more cautious than others, but in general it looks like Canadians aren’t going to let US foreign policy get in the way of their homebuying aspirations," Wahi economist Ryan McLaughlin told Canadian Mortgage Professional.
The Toronto Regional Real Estate Board (TRREB) reported that July 2025 was the busiest July for home sales in the Greater Toronto Area since 2021, supporting the notion that Canadian housing demand remains resilient. However, McLaughlin noted that prices have recently declined in cities like Hamilton, Belleville, and Oshawa—areas heavily reliant on steel and manufacturing sectors hit hard by tariffs. The Financial Post observed that, while Canada is managing “pretty good” overall in the face of Trump’s tariff war, the steel industry has been battered by U.S. tariffs now reaching 50%. Algoma Steel CEO Michael Garcia described the impact as “devastating,” emphasizing the urgent need for investment and modernization if such measures persist.
Despite the recent uptick in home sales, some analysts remain cautious. Higher interest rates and ongoing condo market volatility continue to keep many would-be buyers on the sidelines in Toronto, as broker Victor Tran noted in a recent interview. For now, industry observers suggest that while the trade war is shaping conditions in certain sectors, the broader Canadian housing market has shown remarkable resilience, with only localized pockets of stress tied to tariff-sensitive industries.
Ultimately, Trump’s 90-day tariff pause is a truce, not a treaty—a tactical maneuver that offers immediate relief but leaves the underlying tensions unresolved. As the November 2025 deadline approaches, the world will be watching to see whether Washington and Beijing can turn this fragile ceasefire into something more lasting, or if the next escalation is just around the corner. For businesses, investors, and homeowners alike, the only certainty is uncertainty—and those who adapt quickly will be best positioned to weather whatever comes next.
