On April 10, 2025, U.S. President Donald Trump made a significant shift in trade policy by suspending newly announced tariffs on multiple countries for 90 days—temporarily easing global trade tensions. This unexpected move came amid mounting international pressure and concerns from allies over the economic impact of the tariffs. The decision was well received in Europe, where the European Union responded by pausing its planned retaliatory measures, signaling a potential opening for renewed negotiations.
However, while offering relief to allies, Trump simultaneously escalated the trade war with China. He sharply increased tariffs on Chinese imports from 104% to 125%, further straining relations between the two economic powerhouses. The White House framed the move as a necessary measure to correct long-standing imbalances and force Beijing to adopt fairer trade practices.
China quickly condemned the tariff hike, calling it an act of economic coercion and a serious violation of trade norms. Chinese officials warned that Beijing would "stand firm" and would not hesitate to introduce additional retaliatory measures if provoked further. This followed China’s earlier response of imposing 84% tariffs on U.S. goods—a move seen as a strategic counter to Trump’s aggressive stance.
In parallel, more than a dozen countries have formally submitted exemption requests from the broader U.S. tariff regime. White House economic adviser Kevin Hassett confirmed that the U.S. Trade Representative is reviewing those offers and is close to reaching agreements with several nations, although no details were made public at the time.
The dual-track approach—offering temporary relief to some while tightening the screws on China—has injected renewed volatility into global financial markets. Investors are closely watching developments, particularly the U.S.-China standoff, which now appears more entrenched than ever. The situation raises concerns about supply chain disruptions, rising inflationary pressures, and the broader implications for global economic growth.
