The Trump administration has announced a 90-day suspension of its proposed “reciprocal” global tariff plan, while simultaneously raising tariffs on Chinese imports to as high as 125%. President Donald Trump stated that this move was made to encourage more countries to enter into trade negotiations with the United States.
The update was shared via Trump’s official Truth Social platform and was met with a positive response on Wall Street, as markets rebounded following a recent slump.
Tariff Hikes Targeting China, While Others Get a Pause
Last week, the Trump administration revealed a series of targeted tariffs against specific nations. In particular, China initially faced a 34% increase, which rose sharply to 84% by midweek. The latest announcement hikes tariffs even further to 125%, prompting an aggressive response from Beijing, including retaliatory tariffs on U.S. goods.
President Trump emphasized that China must reform its trade practices, describing the country’s behavior as “disrespectful” to global norms and fair trade principles. His rhetoric and actions have escalated the ongoing U.S.-China trade war.
Global Trade Talks Prompted by Tariff Strategy
According to Trump, over 75 countries have expressed interest in engaging in trade discussions with the U.S. following the announcement of new tariffs. While the global tariff freeze applies to many countries, Canada and Mexico remain exempt from the core 10% universal tariff, which still applies to others.
The administration stated that during the 90-day period, it will continue high-level meetings, including with representatives from Vietnam and other nations, aiming to secure trade terms more favorable to the U.S.
Treasury Comments and Market Reaction
Treasury Secretary Scott Bessent described the 90-day pause as a strategic move, aimed at maximizing the administration’s negotiating power rather than reversing its tariff policy. He emphasized that this was not a response to recent stock market volatility.
Despite the temporary relief for many countries, analysts warn that ongoing complex negotiations and escalating tariffs on China could pose long-term challenges for the global economy. While investors welcomed the short-term certainty, economists caution that the risk of recession remains if trade tensions persist.
China Trade War Heats Up
The tariff hike on Chinese goods came after Beijing imposed its own countermeasures, deepening the standoff. Trump’s firm stance indicates he is unlikely to back down, using tariffs as leverage to address what he views as unfair Chinese trade practices.
Reports also indicate that nearly every country affected by the tariff pause has shown interest in revisiting trade terms, a move Trump views as a validation of his hardline strategy.
Outlook: Trade Negotiations and Economic Uncertainty
In the coming 90 days, the U.S. is expected to engage in formal trade talks with numerous nations. There is cautious optimism that U.S.-China trade relations could stabilize during this period. However, Trump’s administration has made it clear that pressure on China will intensify unless major reforms are made.
Experts believe that prolonged trade tensions, especially between the world’s two largest economies, could have serious consequences for global financial stability.
Ultimately, Trump’s trade policy appears to be a two-pronged approach: pursue mutually beneficial trade agreements with willing nations, while maintaining a hardline stance on China to protect American interests and enforce global trade standards.