Global markets rattled as U.S. spares most countries with 90-day pause — but doubles down on China, igniting fresh trade war tensions
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| The 90-day freeze also does not apply to duties paid by Canada and Mexico |
Washington, D.C. | Tamsil Shahezad Khan | April 10, 2025 — In a dramatic shift that has both calmed and further unsettled global markets, U.S. President Donald Trump on Wednesday announced a temporary 90-day suspension of newly imposed tariffs on most trading partners—except China, which now faces a staggering 125% tariff on all exports to the United States.
The aggressive move against Beijing comes amid escalating tit-for-tat measures that have plunged the world's two largest economies into a renewed trade war, with China's swift retaliation imposing 84% tariffs on U.S. imports.
"We are sending a very clear message," a senior White House official said Wednesday. "Do not retaliate, and you will be rewarded."
The Trump administration's sudden tariff freeze follows a week of wild swings on Wall Street, which saw trillions wiped from global markets in what analysts described as the most volatile period since the early months of the COVID-19 pandemic. The market chaos—combined with rising bond yields—appears to have triggered the White House rethink.
"You have to be flexible," Trump says
Speaking to reporters outside the White House, President Trump admitted the economic turmoil caught his attention.
"I thought that people were jumping a little bit out of line, they were getting yippy, you know," Trump said, using a golf metaphor to describe the panic. "You have to be flexible."
But the 90-day reprieve has limits. A baseline 10% tariff on nearly all U.S. imports remains in place. And Canada and Mexico have not been spared entirely either—their goods still face 25% tariffs linked to fentanyl-related provisions unless they comply fully with the USMCA trade rules.
Tariffs on key industries—such as autos, steel, and aluminum—will also remain unaffected by the freeze.
China responds: "No one wins in a trade war"
Beijing responded swiftly. China's Commerce Ministry, in a statement carried by state-run news agency Xinhua, condemned the U.S. measures as "a serious infringement of the legitimate interests of all countries." Officials warned that China would not sit idly by.
"There is no winner in a trade war, and China does not want one," a senior Chinese trade official said. "But the Chinese government will by no means sit by when the legitimate rights and interests of its people are being hurt."
China's retaliatory tariffs took effect Thursday at 12:01 p.m. local time.
## Mixed messages and mounting uncertainty
The abrupt reversal marks yet another pivot in Trump's trade strategy, which has oscillated between aggressive posturing and last-minute concessions since his return to office in January. Just two days ago, the administration dismissed reports of a possible tariff pause as "fake news."
U.S. Treasury Secretary Scott Bessent insisted the maneuver had been planned to "bring countries to the table," though Trump admitted the economic whiplash influenced his thinking.
While the 90-day pause has offered some relief to America's allies, it has also highlighted the administration's unpredictable approach.
"Other countries will welcome the 90-day stay of execution — if it lasts — but the whiplash from constant zigzags creates more of the uncertainty that businesses and governments hate," said Daniel Russel, vice president of international security and diplomacy at the Asia Society Policy Institute.
Russel added that Beijing is unlikely to shift its stance: "China is unlikely to change its strategy: stand firm, absorb pressure, and let Trump overplay his hand."
What's next?
Though Trump hinted at the possibility of a broader resolution with China, administration officials say they are prioritizing talks with other partners first.
"China wants to make a deal," Trump said Wednesday. "They just don't know quite how to go about it."
Whether this high-stakes standoff de-escalates—or spirals further—will likely hinge on how both superpowers respond in the days ahead. For now, global markets, businesses, and governments are holding their breath.
