On Monday, the White House released a joint statement from the US and Chinese governments announcing a 90-day pause on measures and a reduction in tariffs from both sides.  The US tariff on Chinese imports dipped down to 30 per cent from its current 145 per cent, whereas China lowered its levy on American goods to 10 per cent from 125 per cent.  Outside of the official announcement, the US maintains that a 120 per cent tariff rate will remain on shipments valued at less than $800, or a flat $100 fee per postal item. Starting on June 1, the flat fee will increase to $200 per postal item.  Since the statement was posted, the stock market has been soaring, with the Dow Jones Industrial Average surging by 1104 points, approximately 2.6 per cent, while the S&P 500 and tech-heavy Nasdaq Composite jumped 2.8 and 3.8 per cent, respectively. For many a retailer, especially those on the indie side of the spectrum, this pause on these sky-high tariffs may come as a welcome relief. However, as some retail experts pointed out, this pause is just that – a brief break ahead of what could potentially be a rockier road ahead.  Over the next 90 days, the US and China will “establish a mechanism to continue discussions about economic and trade relations”, and retailers await with bated breath to see what’s next in store for them. What experts have to say about the temporary tariff agreement  Regarding the recent tariffs announcement, GlobalData’s MD Neil Saunders remarked: “The pause is helpful to retailers as it buys them more time and gives them more flexibility.” “However,” Saunders warned, “it does not stop the uncertainty as there is still so much upheaval and chopping and changing in tariff policy, and the current change is only a pause. I expect most brands will still explore moving to a more balanced supply chain with less reliance on China, but some will now adopt a wait-and-see approach.”  He elaborated that “the reality is that both sides need a [permanent] deal as it is economically damaging not to strike one.” At this point in time, no one is certain of what will happen after the 90-day pause, which makes it especially difficult for fashion brands to operate. Concurring with several of Saunders’s points, Jason Miller, a supply chain management professor at Michigan State University, added that “supply chains don’t work well with 90-day windows.” “Supply chain managers need some degree of certainty to make decisions,” Miller explained.  While the constant back-and-forth swings are great for reality TV, he noted that these constant switch-ups don’t encourage long-term decisions and structural shifts.  “Rather, such chaos encourages accumulating inventories (if financial position permits) and adopting a wait-and-see attitude (which is terrible for capital investment),” Miller concluded.  Saunders added: “It is also likely that tariffs will remain higher than they were before President Trump came into office, which is a hurdle that will have to be navigated.” At this point, the trade war has halted $600 billion in bilateral trade, disrupted supply chains, triggered multiple layoffs from larger corporations and negatively impacted countless small business owners.   Retailers need to proceed with caution as they “wait-and-see” Saunders and Miller both cautioned retailers – big-box or otherwise – that they should adopt a “wait-and-see” approach before making any big decisions based on the latest tariffs update.  Alicia Garcia-Herrero, the chief economist for the Asian Pacific sector at investment bank Natixis, stated that the latest tariffs deal isn’t a solution so much as a “more civilized way to divorce”. Garcia-Herrero explained that the deal is “a smoothing of the impact of the bifurcation, just to happen more slowly and less costly. This meeting is basically an attempt, hopefully successful, of avoiding a global recession.” In the meantime, supply chain experts like Isaac Hetzroni, the CEO and founder of Imprint Genius, suggested that retailers should continue to implement practice strategies to combat future tariff adjustments.  This includes tactics such as switching to Ex Works (EXW) [a term under the International Chamber of Commerce ruling that defines the point at which the seller’s responsibilities end and the buyer’s begin] from (FOB), a shipping term for the point in the supply chain when a buyer or seller becomes liable for the goods being transported, pricing or using bonded warehouse for flexibility.  Time will tell how the final deal in the tariffs war of 2025 will turn out and the long-term impact this will have on the American retail industry.