WASHINGTON: US President Donald Trump has announced a 90-day pause on new tariff hikes for most countries, in an apparent response to recent market volatility. However, he intensified his trade offensive against China, imposing a steep 125% tariff citing a “lack of respect” from Beijing.
The surprise move came after a turbulent week on Wall Street, with markets reeling from the president’s earlier announcement of sweeping global tariffs. Following the pause, stocks rebounded dramatically, with the S&P 500 surging 9.5% to close at 5,456.90—snapping a week-long losing streak.
Despite the pause for most nations, Trump doubled down on China, saying the country’s leadership “doesn’t quite know how to go about” negotiating a deal. “A deal’s going to be made with China. A deal’s going to be made with every one of them,” Trump said, while hosting motor racing champions at the White House.
Responding to criticism that he had backtracked on his aggressive trade stance, Trump insisted he was simply being “flexible.” “People were getting a little yippy, a little afraid,” he said, referring to market jitters. “I saw last night where people were getting a little queasy.”
The move follows mounting pressure from investors and global leaders after the US imposed a baseline 10% tariff on all imports last Saturday, with elevated rates for key trading partners—including China and the European Union—taking effect Wednesday.
Trump revealed on Truth Social that over 75 countries had reached out to negotiate and refrained from retaliatory action, prompting him to issue the 90-day tariff suspension, though the baseline 10% remains in effect.
China, however, struck back earlier Wednesday by raising tariffs on US imports to 84%, retaliating against Trump’s escalation of duties on Chinese goods to 104%. In response to the latest move, Beijing’s finance minister remarked, “The United States simply piles mistakes on top of mistakes.”
Meanwhile, the European Union announced retaliatory tariffs targeting over €20 billion worth of US goods—including soybeans, motorcycles, and beauty products. However, the EU has not responded to the separate “Liberation Day” tariffs of 20% that took effect Wednesday.
Despite heightened tensions, Trump remains confident that his strategy will revive American manufacturing by compelling companies to relocate operations back to the US. “I’m telling you, these countries are calling us up kissing my ass,” he told fellow Republicans at a private dinner, referring to nations eager to secure favourable trade deals.
In addition to economic tensions, diplomatic strains are escalating. China issued a travel advisory warning its citizens to assess risks before visiting the US. Meanwhile, US Defence Secretary Pete Hegseth, speaking from Panama, accused Beijing of issuing “threats” as tensions continue to build around control of the Panama Canal.
As Trump presses forward with his trade vision, the world’s two largest economies appear locked in an increasingly hostile standoff.
— AFP
