- President Trump suspends tariffs for most nations for 90 days.
- China hit with a massive 125% import tax amid ongoing trade tensions.
- Global markets rebound after early fears of a trade war.
- Trump defends move as protection against exploitation by Beijing.
- UK welcomes move, while China remains defiant.
President Donald Trump has once again shaken the global economy—this time with a mixed message on tariffs. After previously triggering panic with widespread trade duties, Trump has issued a 90-day suspension for most countries, softening his earlier stance. However, China did not escape the heat.
Instead, Beijing was hit hard with a 125% tariff on Chinese imports, a dramatic escalation following threats from China to slap 84% duties on American goods. This move left global analysts watching closely as tensions between the two economic powerhouses escalated.
Despite initial shockwaves, markets quickly recovered. The S&P 500 rallied 9.5%, while the Dow Jones surged 7.8%, rebounding from fears of a global economic spiral.
Trump: “China Must Stop Exploiting Us”
Taking to Truth Social, Trump explained the tough stance against China, stating:
“China will realise that the days of ripping off the USA are over.”
He argued that the sharp tariff was necessary due to China’s continued economic aggression. Trump labeled China’s retaliation threats as “disrespectful,” indicating that Beijing had crossed the line.
At a brief appearance outside the White House, Trump said,
“People were getting yippy… this had to be done.”
His message: America was not backing down.
Selective Relief, Strategic Moves
While most U.S. trade partners get a temporary break, Trump emphasized that the tariff pause only applies to countries that haven’t retaliated. The U.K., already under the 10% default import tax, praised the development.
“A trade war is in nobody’s interest,” said a statement from Downing Street.
However, with the China-U.S. row growing hotter, hopes for a wider resolution remain dim.
Political Pushback
While Trump’s allies applauded the strategy shift, critics weren’t impressed. Democratic Senator Chuck Schumer called it a sign of panic, accusing the President of “reeling and retreating” under market pressure.
Still, Treasury Secretary Scott Bessent dismissed the idea that financial markets had influenced Trump’s move, insisting that the tariff changes were part of a planned trade recalibration.
As the dust settles, one thing remains clear: the global trade chessboard has been shaken—and China is now squarely in the spotlight.
