Trump Pauses Global Tariffs, Hits China with 125% in Trade War Escalation

In a dramatic shift in trade policy, U.S. President Donald Trump announced a 90-day pause on his newly implemented reciprocal tariffs for countries that did not retaliate against the United States. While the pause reduces tariffs to 10% for over 75 nations, China has been hit with a steep hike — a 125% tariff on all Chinese goods, up from the previously declared 104%.

The pause comes just one day after Trump’s sweeping reciprocal tariffs took effect, triggering a market panic and raising fears of a global recession. “I did a 90-day pause for the people who didn’t retaliate,” Trump stated, “because I told them if they retaliate, we’re going to double it.”

The White House echoed this approach with a firm message on social media: “Do not retaliate and you will be rewarded.”

China, however, has refused to back down. In direct response to Trump’s initial 104% tariff, Beijing escalated its own tariffs on American goods to 84%, up from 34%, and pledged to “fight to the end.” China also filed a formal complaint with the World Trade Organization and announced export restrictions targeting several U.S. firms.

Defending his new approach, Trump emphasized flexibility in negotiation and claimed that his tariff pause reflects strength, not weakness. On TruthSocial, he said the pause was based on over 75 countries reaching out to negotiate in good faith. “Sometimes you have to go under the wall, around the wall, or over the wall,” he said, implying a strategic retreat to achieve broader trade reform.

Despite the intensifying standoff with China, markets reacted positively. The S&P 500 surged nearly 7% following the announcement, suggesting investor relief over the temporary easing of global trade tensions.

Trump’s tariff policy marks a pivot in what had become a sweeping trade war with many of America’s key partners. With the European Union and Canada previously threatening retaliatory tariffs, the pause may also be aimed at de-escalating conflicts on multiple fronts.

Still, with China retaliating sharply and no resolution in sight, the U.S.-China trade war appears far from over. As both nations dig in, the global economic landscape braces for further volatility in the months ahead.

IT.