President Trump declares a 90-day pause on new tariffs for most countries while raising tariffs on China to 125%. What does it mean to global impact, market reactions, and US trade in 2025?
Trump Tariff: “Global Markets Rally”: As of April 10, 2025, there have been significant developments about American trade policies under President Donald Trump:
Tariff adjustment and talks
Trump Tariff Stagnation: President Trump announced a 90-day suspension of new tariffs for most countries, reducing the mutual tariff rate by 10%. This decision follows the requests of more than 75 countries to interact on business agreements. However, the tariff on Chinese imports has been increased by 125% in response to China’s retaliation.
Treasury’s stance: Treasury Secretary Scott Bessent emphasized that new tariff levels work as a parasitical roof, provided that the country does not retaliate. He said that the administration has launched “70 talks” with foreign governments to overcome trade imbalance.
Global Reactions and Economic Impact European Union’s response: The European Union has decided to exempt American-made bourbon, such as Jack Daniel and producer Mark from its latest round of subscription tariffs. The aim of this step is to increase trade stress and avoid further economic conflict.
Market reactions: After the declaration of tariff pose, the global stock markets experienced significant growth. S&P 500 recorded an increase of 9.5%, which shows investor optimism about the possible resolutions of ongoing trade disputes.
Growth with China
Increased tariff: Despite the normal tariff stagnation, the U.S. Has increased the tariff on sugar imports by 125%. In vengeance, China has imposed 84% tariffs on American goods, intensifying the trade war between the two countries.
Public sentiment: An AI-Janit video making fun of American tariff strategy has gone viral on social media platforms in China. The video depicts American workers in factory settings, which is accompanied by Chinese music, and ends with the slogan of “Make America Great Again”, highlighting the growing tension and public spirit in China.
Domestic Approach
Economic Outlook: The Treasury Secretary reduced the fears of a magnificent American recession, citing strong job numbers and positive corporate reaction as an indicator of economic stability. However, some financial leaders are cautious about the possible long-term effects of tariff policies.
Conclusion
Recent adjustments for American tariff policies reflect a complex landscape of international talks and economic strategies. While the 90-day stagnation provides a window for diplomatic discussion with many countries, the growing trade struggle with China faces challenges. The stakeholders are advised to be informed on the ongoing developments and assess the possible effects on their respective areas.
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