President Donald Trump announced on Wednesday a 90-day pause on his reciprocal tariffs for all countries except China, which will now face a steep 125% tariff on all goods entering the United States.
The move which was announced during a press briefing is a ploy at recalibrating the U.S. trading strategy while continuing to pressure Beijing. “The world needs to trade fair. We’re pausing for now, but China will pay,” is what president Trump divulged.
The decision sent U.S. financial markets soaring. The Dow Jones rose nearly 8%, and the S&P 500 climbed 9.5% as investors welcomed the temporary easing of trade tensions with key allies. However, the escalation against China has sent a wave concern through economists and foreign governments, with fears of further retaliation.
China had previously responded to Trump’s tariff threats with an 84% tariff on American imports. Officials in Beijing have not yet issued a formal response to the new 125% rate, but state media warned of “serious consequences for American consumers and exporters.”
According to the U.S. Trade Representative’s office, the 90-day pause will allow the administration to assess which countries are trading fairly.
“This strategy risks isolating the U.S. from its allies while inflaming tensions with China,” said Dr. Anna Miller, senior economist at the Peterson Institute for International Economics. Trump had faced growing pressure from business groups and lawmakers to avoid a full-scale tariff implementation that could spike prices and disrupt supply chains. However, Treasury Secretary Scott Bessent has said that the pause is to make sure trade partners are given time to negotiate and not due to pressure of market reactions.
“The president’s walk-back on tariffs shows how unpredictable this policy remains,” said former trade official Mark Richardson. “Markets are reacting positively for now, but the threat of a trade war with China looms large.”
Read more: https://newscope.press/trump-intensifies-trade-war-with-china-slaps-104-tariff-china-too-retaliates/
