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Home News

Trump Pauses Global Tariffs, Increases Pressure on China

The tariffs have been postponed to 90 days.

by Heirul Kamel
April 10, 2025
Donald Trump announcing the tariffs

Image: France 24.

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In a sudden policy shift, US president Donald Trump has announced a 90-day postponement of new tariffs against all countries except China. The move follows an intense escalation in global trade tensions earlier this month. 

The current universal reciprocal tariff rate now stands at 10%. Countries that have been accused of imposing high tariffs on US goods may still face additional duties, though the White House has not published a final list. Details on tariffs affecting Canada and Mexico also remain unclear, with estimates ranging from 10% to 35%.

Trump 90 day postponement on global tariffs
Image: Reuters

Trump characterised the pause as a strategic move, stating on Truth Social that the US had opened trade negotiations with over 75 countries. However, critics, including Elon Musk and members of the Republican Party, argued that the tariff policy was unnecessarily aggressive and risked destabilising key industries.

Despite the ongoing uncertainty, the announcement had an immediate positive effect on financial markets. Shares of major technology companies such as Apple, NVIDIA, Amazon, Alphabet, Tesla, Microsoft and Meta surged in early trading, as investors welcomed the temporary reduction in trade tensions.

Trump 90 day postponement on global tariffs
Image: Reuters

Initially, the United States imposed sweeping new tariffs on 2 April, raising rates against China to 54% before later increasing them to 104%. In response, China retaliated with an 84% tariff on US imports and restricted exports of rare earth metals, prompting the White House to escalate tariffs on Chinese goods to 125%. Analysts warn, however, that heavy dependence on Chinese supply chains for products like laptops, smartphones, and batteries could cause higher prices and shortages if the split continues.

(Source: NST, Reuters, The Washington Post)

Filed Under chinapausepostponementtariffTariffsTrump
Updated 10:02 am, Thu, 10 April 25
https://lowy.at/p3ctl
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