U.S. President Donald Trump holds a signed executive order during an event in the East Room of the White House, Tuesday, April 8, 2025, in Washington. Image: AP.
(The Post News)– President Donald Trump has ordered a 90-day delay of higher tariffs on imports from the majority of countries, with immediate effect, marking a dramatic change in U.S. trade policy. The purpose of this pause is to give more than 75 countries that have indicated an interest in discussing trade agreements more time to negotiate. Trump said, “You have to be flexible,” underscoring the need for flexibility in trade negotiations.
China is, however not included in the tariff freeze, and Trump has justified the action by pointing to what he sees as a lack of respect from Chinese leadership. As a result, import duties from China have been raised to 125% with immediate effect. Trump remarked that China “doesn’t quite know how to go about” negotiations, highlighting ongoing tensions between the two economic powers.
The announcement has elicited varied responses globally. China’s Ministry of Commerce condemned the U.S. actions, stating that the increased tariffs “seriously undermine” the global trading system and vowed firm retaliation. Canada and Mexico, on the other hand, have embraced the tariff halt, seeing it as a chance to negotiate and resolve US worries about drug trafficking and border security. The agreement to halt tariffs for a month came after a “very friendly conversation” between Trump and Mexican President Claudia Sheinbaum.
The tariff halt has had a beneficial impact on financial markets, with major U.S. indices seeing notable increases. The S&P 500 saw a dramatic reverse from earlier losses, rising 9.5% to close at 5,456.90. Following the statement, the stock exchanges in Tokyo, Taipei, Australia, and Hong Kong all reported significant increases, as Asian markets also recovered.
China wasted little time hitting back. Just hours after President Trump confirmed the 125% tariff hike on Chinese imports, Beijing announced a steep increase of its own, jacking up levies on a wide range of U.S. goods from 34% to 84%, effective immediately.
A spokesperson from China’s Ministry of Commerce condemned Washington’s move as “a mistake on top of a mistake,” according to a statement reported by the Associated Press. The ministry accused the U.S. of destabilising global trade systems and warned that the escalation could have long-term consequences for both economies.
The retaliatory tariffs target several sectors, including agriculture, electronics, and the automotive industry, many of which are politically sensitive in key Republican-held states. Chinese officials didn’t mince words. “The United States is piling pressure without cause, and we will respond with resolute and effective measures,” the statement continued.
While Beijing left the door open for negotiation, it made clear that any resolution would require Washington to “correct its wrongdoings” first. At the same time, Chinese media, including the state-run Global Times, framed Trump’s tariff moves as politically motivated and shortsighted, warning that they could damage America’s credibility as a trading partner. Despite the sabre-rattling, the Shanghai Composite posted modest gains, suggesting that investors are still holding out hope for a diplomatic off-ramp.
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