In a surprising turn of events, former U.S. President Donald Trump has announced a 90-day suspension of sweeping new tariffs on dozens of countries, excluding China. The move, which the White House framed as strategic rather than reactive, followed by just one week, the administration’s imposition of historic import duties that roiled global markets and drew?denunciations from American allies and corporate leaders alike. In last week of April 9, 2025, Trump revealed that tariffs on 60 major trading partners would be temporarily paused less than 13 hours after they officially took effect.
The decision covers countries from Europe, Asia, and Latin America, including members of the European Union, Indonesia, and Cambodia. These countries had been subject?to import tariffs in the phenomenal range of 20% to as much as 46%, depending on calculations related to each country’s trade surplus with the U.S. Despite the dramatic reversal; Trump argued that the?shift in direction did not signal a back track. “You gotta be flexible,”?he told reporters at the White House. “You have to be flexible,” he told reporters at the White House. He characterized the pause as a strategic effort to give space for trade negotiations and described it as a way to invite dialogue rather than provoke conflict.
A baseline tariff of 10% will still apply to imports from all countries, and previously implemented tariffs, such as those on steel, aluminum, vehicles, and vehicle parts, remain intact. The European Union welcomed the pause and, in turn, announced a 90-day freeze on its retaliatory tariffs against U.S. products. “We want to give negotiations a chance,” stated European Commission President Ursula von der Leyen, signaling a possible opening for broader trade talks. While most countries were offered temporary relief, China was explicitly excluded from the tariff pause. Trump doubled down on his hardline stance, raising tariffs on Chinese imports to a staggering 125%. When factoring in an earlier 20% duty imposed at the start of the year, the total cost of tariffs on Chinese goods entering the U.S. now sits at 145%.
Trump justified the decision based on a “lack of respect” from Beijing. Posting on his Truth Social platform, Trump claimed that the era of China “ripping off” the U.S. was over and that new measures would force a reset in trade dynamics. He later hinted that he did not expect to increase tariffs on China further but remained firm in his demand for better trade practices from Beijing. The announcement of the pause sent shockwaves through the financial world. Wall Street won big in return: the S&P 500 jumped 9.5%, and the tech-focused NASDAQ rocketed by 12.2%,?notching some of their best days ever. Markets around the world followed, with rallies across Europe and Asia. But the vascular?optimism was short-lived. Global markets followed suit, with rallies reported in both Europe and Asia. However, the optimism was short-lived. As investors processed the policy’s full scope, particularly the unrelenting tariffs on China, some of the early gains were rolled back.
Trump claimed that a deal is inevitable but noted that Beijing’s leadership seems unsure how to proceed.
The bond?market, which had exhibited some panic after the initial tariff announcement, also started to settle down. Yields on 10-year U.S. Treasury notes, which had soared to 4.5 percent, eased a bit as?confidence in the government’s economic plan started to reemerge. Several sources said the pause had not come as a?total surprise. Trump’s administration has?come under increasing criticism from lawmakers, economists, and business groups about the broad tariffs. The move was widely criticized as threatening to damage American supply chains, driving up consumer prices, and – with some estimates projecting the?cost to the economy to be $700 billion – leaping into a wider economic crisis.
Considerable political pressure came from financial markets, notably from a sharp?sell-off in bonds and equities. Investors started to demand a higher return because of worries about instability and inflation, which could have led to higher borrowing costs for government and private companies. Although the White House portrayed the tariff freeze as a strategic maneuver, many analysts think the move stemmed at least in part from a?fear of further market turbulence.
Beijing’s response has balanced symbolic defiance with?diplomatic restraint. A Chinese Foreign Ministry spokesperson also took to the social media platform X, sending a defiant message featuring the words, “We don’t back down,” and a video of a speech made by Mao Zedong during the Korean?War. The Chinese Ministry of Commerce took a more measured tone, calling for negotiations based on “mutual respect” and “win-win cooperation. “By Friday, China retaliated by raising its tariffs on U.S. imports to 125% and filed a formal complaint with the World Trade Organization (WTO), escalating the trade dispute further.
The 90 days presents?a small opportunity for the U.S. and its trading partners worldwide to renegotiate important trade terms. Trump said?he would consider extending the pause if its first steps succeed. It is expected to focus on deals with countries such as Vietnam, Japan?, or South Korea, which have already expressed interest in new agreements. As for China, Trump claimed that a deal is inevitable but noted that Beijing’s leadership seems unsure how to proceed. “A deal’s going to be made with China. A deal’s going to be made with every one of them,” he stated confidently.
Trump’s senior trade advisor, Peter Navarro, declared the development “the greatest trade negotiating day in American history,” suggesting the administration now has the leverage it needs to reshape global trade. Only time will tell whether this bold strategy yields lasting results-or sparks new challenges on the world economic stage.
The write is associated with a government thinktank and can be reached at danialihsanndu @gmail.com