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Flat White

Trump’s tariff pause and the game theory gamble

16 April 2025

2:36 PM

16 April 2025

2:36 PM

President Donald Trump’s recent decision to pause tariffs for 90 days on most US trading partners – while escalating them to a scorching 125 per cent on Chinese imports – has sent a ripple through global markets and diplomatic circles alike. While the S&P 500 surged 9.5 per cent on the news, the real logic behind this move lies not in economics alone but in game theory – the strategic science of decision-making under competition and uncertainty.

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