In a dramatic shift that underscores the volatility of U.S. trade policy under former President Donald Trump, the administration has announced a 90-day suspension of new tariffs on most nations — a move that has temporarily calmed jittery markets but reignited tensions with China.
The surprise announcement, made on April 9, follows mounting pressure from over 75 countries and significant turbulence in global markets.
Investors had grown increasingly wary after the initial tariff rollout wiped more than $6.5 trillion off U.S. markets in under a week. In a swift turnaround, the pause in duties has sparked a recovery rally, clawing back nearly $5.1 trillion in value in a matter of hours.
“This is a big win for American businesses and workers,” Trump told reporters at a press briefing in Washington. “We’ve shown we can be tough, but we’re also fair. Markets are roaring — gotta be a record.”
China Left Out in the Cold
Despite the general suspension, Trump made it clear that China remains firmly in the crosshairs. Tariffs on Chinese imports have been hiked to a staggering 125%, escalating an already tense trade confrontation.
“China has taken advantage of America for decades. That ends now,” Trump said, reaffirming his hardline stance.
Beijing wasted no time in retaliating, imposing 84% tariffs on American goods and warning that Washington’s “chaotic and hostile” trade tactics will ultimately backfire. Chinese officials labeled the U.S. approach a “serious breach of international economic order” but added they remain open to dialogue based on “mutual respect and equality.”
Global Fallout and WTO Concerns
The World Trade Organization has expressed alarm over the intensifying U.S.-China trade war, warning that the ongoing tit-for-tat could shave off a significant chunk of global GDP if left unresolved. Several U.S. allies have also criticized the erratic policy shifts, pointing to the uncertainty it creates for global supply chains and investment.
“This kind of whiplash in economic policy is unsustainable,” said Dr. Laura Chang, a senior economist at the Peterson Institute for International Economics. “Markets are reacting now, but the long-term damage to global trust in U.S. economic leadership may be harder to reverse.”
Domestic Reaction: Relief with a Side of Caution
Domestically, U.S. manufacturers and retailers welcomed the 90-day reprieve but cautioned that the future remains murky. Many companies had already begun restructuring their supply chains and bracing for extended disruptions.
“Businesses can’t plan based on unpredictable executive orders,” said James Holloway, CEO of a major auto-parts supplier. “What we need is a consistent and strategic trade policy — not daily curveballs.”
What’s Next?
The 90-day window could offer breathing room for behind-the-scenes diplomacy, but analysts warn that with China excluded — and with Trump’s re-election campaign gaining steam — a durable resolution may be elusive.
“This isn’t a resolution; it’s a reset,” said political analyst Meredith Rhodes. “Whether it leads to meaningful negotiations or another round of chaos remains to be seen.”
As the clock ticks down on the 90-day pause, global eyes will remain fixed on Washington and Beijing — hoping that rhetoric gives way to results.
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