Trump delays tariff hikes on most countries, but increases pressure on China

Thursday 10 April 2025 - 11:04

By: Zahouani Ilham

Trump delays tariff hikes on most countries, but increases pressure on China

US President Donald Trump temporarily suspended tariff hikes for most countries on Wednesday, acknowledging that such moves had stirred market anxiety. However, he continued his aggressive stance against China by raising tariffs on Chinese goods to 125%, citing a "lack of respect."

Despite market volatility, Wall Street experienced significant gains following Trump's announcement of a 90-day pause on increased tariffs for nearly all nations. Trump insisted that he hadn’t backtracked on his stance, emphasizing the need for flexibility in trade negotiations. He mentioned that the US bond market's instability influenced his decision to pause the hikes.

Trump maintained that trade deals would be reached with all countries, including China, although he noted that Chinese leaders were unsure of how to proceed. He also expressed confidence that no further tariff hikes on China would be needed.

The announcement came after market losses and China's retaliation by increasing tariffs on US imports. Trump’s move to pause the hikes followed discussions with over 75 countries, which sought to avoid retaliation.

Simultaneously, Trump intensified his conflict with China, which had raised tariffs on US goods earlier, accusing the US of mishandling trade. Meanwhile, the European Union responded by targeting US products in retaliation for American duties on steel and aluminum, though they did not address the separate "Liberation Day" tariffs.

Trump’s pause on tariffs caused a surge in Wall Street stocks, reversing the previous week’s losses. Markets had initially fallen sharply in response to Trump’s announcement of sweeping global tariffs.

The decision was part of Trump’s broader strategy to revive American manufacturing by encouraging companies to relocate to the US. His focus on China, accusing it of unfair trade practices, highlights the growing tensions between the world’s two largest economies.