Trump’s Tariffs Pause: Most Countries Get a Break, China Doesn’t

Adnan Mohammed
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U.S. President Donald Trump has made a move that’s catching attention on the global trade front: a 90-day pause on tariffs for more than 75 countries—excluding China. This shift opens the door for smoother negotiations with U.S. allies while putting more pressure on Beijing. It signals a recalibration of how the U.S. wants to handle trade relations moving forward—rewarding cooperation while punishing what it sees as unfair play. As international supply chains continue to feel the strain of past policies and global events, this decision may either bring some short-term relief or set the stage for a new chapter in trade tensions.

Short-Term Relief for U.S. AllieS

Trump Tariffs China
Photo via Executive Gov

Countries that didn’t hit back during the last round of trade battles are now seeing a 90-day break from steep tariffs. These nations, having avoided retaliatory measures against previous U.S. tariffs, are being offered a temporary baseline rate of 10%. The move is intended to show goodwill and signal a shift toward more constructive trade conversations. By giving allies some breathing room, the U.S. hopes to strengthen diplomatic ties and reduce the tension that has built up through previous rounds of back-and-forth tariff hikes.

  • What’s happening:
    • The U.S. is offering this as a chance to restart talks and repair strained trade ties.
    • Countries like Canada, the UK, and Australia are part of the group getting a break.
    • The goal is to reset relationships and give time for potential new agreements.

China Faces a Steep Climb

Trump Tariffs China
Photo via Business Standard

While most countries are getting a temporary break from tariffs, China is facing a tougher road ahead. The U.S. has decided to raise tariffs on Chinese goods to 125%, marking one of the sharpest trade actions taken in recent years. This significant increase is meant to send a strong signal to Beijing about the consequences of what U.S. officials describe as repeated unfair trade practices and retaliatory actions. Unlike the 75+ countries receiving leniency, China is being met with more pressure in hopes of pushing it toward negotiation or policy change.

  • Why it’s happening:
    • China had previously slapped an 84% tariff on U.S. goods.
    • Trump and Treasury Secretary Scott Bessent are framing this as a response to unfair practices.
    • The message is clear: cooperate, or face consequences.

Investors React with Optimism

Investors
Photo via Corporate Finance Institute

Despite the hard line with China, markets didn’t react with concern. In fact, they moved in the opposite direction. Investors seemed to interpret the tariff pause as a sign of possible de-escalation with key allies and a clearer trade policy outlook. With fewer surprises and a more targeted approach to tariffs, many saw this as a positive signal for global trade stability—at least in the short term.

  • Market snapshot:
    • Nasdaq rose 12%
    • S&P 500 went up 9.5%
    • Dow gained nearly 8%

China’s Response: Complaints and Threats

China’s
Photo via CNBC

China didn’t take the new tariffs lightly. Within hours of the announcement, Beijing filed a formal complaint with the World Trade Organization, arguing that the measures violate global trade norms. Alongside the complaint, Chinese officials hinted at a series of potential countermeasures, ranging from new import restrictions to reduced cooperation on existing bilateral agreements. The response was swift and strategic, suggesting that China is preparing for a longer standoff unless the situation changes.

  • Key developments:
    • Beijing may target U.S. agricultural imports.
    • Economists estimate this could trim China’s GDP growth by up to 2.4%.
    • There’s also a chance China returns to the table to limit the damage.

Conclusion

U.S. President Donald Trump has made a move that’s catching attention on the global trade front: a 90-day pause on tariffs for more than 75 countries—excluding China. This shift opens the door for smoother negotiations with U.S. allies while putting more pressure on Beijing. It signals a recalibration of how the U.S. wants to handle trade relations moving forward—rewarding cooperation while punishing what it sees as unfair play. As international supply chains continue to feel the strain of past policies and global events, this decision may either bring some short-term relief or set the stage for a new chapter in trade tensions.

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