President Donald Trump has redrawn the map of global trade tensions by announcing a temporary pause on higher tariffs for most US trading partners—while launching a full-scale escalation against China with a massive 125% tariff hike.
The announcement, made shortly after broad tariffs had taken effect across more than 60 countries, marks a sharp and selective shift in Trump’s strategy. Countries that did not retaliate against previous US tariffs were granted a 90-day pause and capped at a 10% import duty. China, on the other hand, was hit with steep penalties, with Trump citing Beijing’s “lack of respect” and refusal to cooperate.
This latest tariff maneuver follows a volatile week in global markets. US Treasury yields spiked, recession fears intensified, and the White House faced backlash from allies and economists. But Trump’s tariff moderation—at least toward non-retaliatory nations—helped markets rebound sharply, with the S&P 500 surging nearly 10%.
The European Union, which had planned its own retaliatory tariffs but had yet to enact them, benefited from the pause. A UK government spokesperson welcomed the move, reiterating that “a trade war is in nobody’s interests,” while insiders in Brussels called the temporary reprieve “a window for diplomacy.”
Beijing, however, responded swiftly and forcefully. Matching earlier US tariffs, China raised its duties on American goods from 34% to 84%, warning it would “fight to the end” if the US continued what it called “bullying economic practices.” China’s foreign ministry insisted that negotiations must be rooted in mutual respect, not coercion.
Despite mounting tension, Trump remained upbeat. Speaking outside the White House, he expressed confidence that a deal with Chinese President Xi Jinping was still possible. “It’s all going to work out amazing,” he told reporters. Whether that optimism is justified, however, remains to be seen.
As global observers look on, one thing is clear: Trump’s latest tariff recalibration might buy time with allies—but it’s also drawn an even sharper battleline with the world’s second-largest economy.
