Guacamaya, April 9, 2025. In an unexpected shift in the global trade war, U.S. President Donald Trump has yielded to market pressures and announced a partial 90-day truce, during which he will suspend the imposition of new tariffs.
This measure aims to ease growing global economic uncertainty, though punitive actions against China remain, with an immediate tariff hike to 125%. The rest of the U.S.’s trade partners will face a universal 10% tariff on steel, aluminum, and automobiles, marking unprecedented protectionism.
The decision comes after intense criticism from within his own Republican Party and pressure from business leaders and investors.
The news was met with enthusiasm in the markets, with Wall Street surging between 6% and 8% following the announcement. Trump, who earlier in the day had posted on X that it was a “great time to buy,” appears to have made a strategic move amid economic volatility.
A Truce, but with Conditions
President Trump has drawn a clear distinction: China remains the primary target of his tariff policy. While the truce affects several countries, tariffs against Beijing remain severe. The U.S. leader made it clear that if China retaliates further, tariffs could escalate even more. Meanwhile, the European Union has also been hit with a 10% tariff, though Trump hinted that this could rise depending on Europe’s response.
Global Impact and China’s Reaction
Trump’s shift comes after a week of trade tensions that have affected numerous countries, including traditional U.S. allies. Meanwhile, China has maintained a firm stance against tariff threats. Beijing has responded by announcing an increase in its own tariffs on U.S. goods, raising them from 34% to 84%, and has promised further countermeasures if Washington’s policies continue to escalate.
The Chinese government has labeled Trump’s actions as “blackmail,” stating that it will not yield to external pressure. In this context, China has reaffirmed its willingness to continue negotiations—but only on equal terms, without resorting to economic coercion.
White House Statements
In an effort to soften public perception of his reversal, the White House has framed the tariff suspension as part of a calculated strategy. Presidential spokesperson Karoline Leavitt defended the decision, insisting it was part of a pre-established plan by Trump. Meanwhile, Treasury Secretary Scott Bessent emphasized that the tariff escalation against China was due to the Asian giant’s unfair trade practices.
Consequences for the Global Economy
Trump’s decision to impose such steep tariffs on Chinese goods and several other countries has sparked ongoing controversy. While the U.S. administration continues to claim it is protecting national interests, many economists warn of the risks of a global recession. Trade tensions have also rattled international financial markets, with investors fearing a prolonged period of economic uncertainty.
Meanwhile, China has not stood idly by. This week, Beijing mobilized state-owned banks and investment firms in an effort to stabilize its stock markets, which have been severely impacted by Trump’s tariff policies. China’s response reflects a determination to resist pressure and protect its economic development model.
Though Trump has opted for a temporary pause in tariff escalation, the trade war remains a central issue in international relations. With the future of tariffs still uncertain, the next 90 days could prove crucial in determining the course of the global economy.
