 |
| USA President Donald Trump |
By Tamsil Shahezad Khan | April 10, 2025 | REPORTLINE
In a dramatic escalation of trade tensions, U.S. President Donald Trump has imposed a staggering 125% tariff on all Chinese imports, even as he announced a temporary 90-day pause on tariffs for other nations—excluding China. The move sent shockwaves through global markets, reigniting fears of a full-blown trade war between the world’s two largest economies.
The White House followed the announcement with a pointed warning to global trading partners: “DO NOT RETALIATE AND YOU WILL BE REWARDED.” But Beijing quickly struck back, implementing an 84% tariff on all U.S. goods entering China just hours later, further deepening the standoff.
The tit-for-tat tariff battle marks yet another chapter in the strained relationship between Washington and Beijing. China’s Commerce Ministry denounced the U.S. tariffs as “a serious infringement of the legitimate interests of all countries,” with a senior official stating, “There is no winner in a trade war… but China will not sit idly by when the rights of its people are being harmed.”
Markets Rattled, Trump Backpedals—For Some
Trump’s reversal on tariffs for other countries came after a tumultuous week in financial markets. The fallout from earlier tariff announcements wiped trillions off global stock exchanges and sent U.S. Treasury yields soaring. The economic chaos reportedly caught the President’s attention.
“I thought people were getting yippy,” Trump said, using a golf term to downplay market panic. “You have to be flexible.”
Although he framed the pause as a strategic move to encourage negotiation, administration officials had just days earlier denied any such pause was being considered. The 90-day exemption, however, does not extend to Canada and Mexico, who remain subject to fentanyl-related tariffs unless they meet specific trade agreement terms.
A 10% blanket tariff on nearly all U.S. imports also remains in effect, alongside existing levies on steel, aluminum, and automobiles.
Whiplash for Global Trade
Since returning to the White House in January, Trump has oscillated between threats and rollbacks in his trade policies. This unpredictability has unsettled foreign leaders and frustrated U.S. business leaders who say the instability is stifling investment.
“This whiplash creates more of the uncertainty that businesses and governments hate,” said Daniel Russel, vice president at the Asia Society Policy Institute. “Other countries will welcome the 90-day stay—if it lasts—but Beijing is unlikely to change its approach.”
Experts believe China will hold its line, seeing Trump’s tactics as attempts to provoke concessions through intimidation—something Beijing is increasingly unwilling to entertain.
“Stand firm, absorb pressure, and let Trump overplay his hand,” Russel said, summarizing China’s likely response strategy.
What’s Next?
Despite the fiery rhetoric, Trump suggested there’s still room for negotiation with China. “China wants to make a deal,” he said, though he added, “They just don’t know how quite to go about it.”
For now, U.S. officials say they’ll prioritize discussions with other nations during the 90-day tariff freeze, leaving the China standoff to simmer.
With both sides digging in and market uncertainty growing, the global economy may be bracing
for a long and volatile road ahead.
Social Footer