In a significant development for global trade, China has called on the United States to meet it “halfway” following US President Donald Trump’s decision to pause steep tariff hikes on most countries for 90 days. The announcement, made on April 9, 2025, triggered a massive rally in global markets, though tensions remain high as Trump simultaneously increased tariffs on Chinese goods from 104 percent to 125 percent. China retaliated with an 84 percent levy on US imports, escalating the trade conflict between the world’s two largest economies.
Markets Surge on Tariff Reprieve
Wall Street saw dramatic gains following Trump’s tariff pause, with the Dow Jones Industrial Average soaring 7.9 percent to 40,608.45, the S&P 500 climbing 9.5 percent to 5,456.90, and the Nasdaq Composite Index leaping 12.2 percent to 17,124.97. The rally extended to Asia and Europe, with markets in Hong Kong, Tokyo, Taipei, and Shanghai posting significant gains. Taipei recorded a historic 9.3 percent increase, while European markets also rebounded sharply. EU chief Ursula von der Leyen hailed the pause as an “important step towards stabilising the global economy.”
However, the tariff escalation on China has raised concerns. China’s commerce ministry warned that the heightened levies could “severely” impact the global economy, with spokeswoman He Yongqian emphasizing that “the door to dialogue is open.” She urged the US to engage in discussions based on “mutual respect, peaceful coexistence, and win-win cooperation” to resolve the ongoing trade disputes.
A Rollercoaster for Global Trade
The trade war has been a rollercoaster for markets since Trump introduced a 10-percent baseline tariff on all countries, with higher rates targeting key trading partners accused of unfair practices. The initial tariffs, which took effect on April 8, 2025, led to a sharp sell-off, with Asian equities collapsing on what was dubbed a “black Monday” for markets. US farmers, particularly in sectors like dairy, expressed alarm as crop prices dropped and access to foreign markets diminished. The International Dairy Foods Association cautioned that prolonged tariffs could jeopardize billions in investments.
Trump’s surprise 90-day pause on the higher tariffs—while maintaining the 10-percent baseline—offered a reprieve, though he denied backtracking on his policy. “I saw last night where people were getting a little queasy,” Trump said, referencing the market unrest and rising US bond yields, often a sign of economic distress. He later posted on Truth Social, “What a day, but more great days coming!!!” Trump’s senior trade advisor, Peter Navarro, called it “the greatest trade negotiating day” in US history, noting that over 75 countries have sought to negotiate with Washington in the coming 90 days.
China-US Tensions Persist
Despite the global relief, the tariff hike on China has deepened the rift between Washington and Beijing. China’s foreign ministry criticized the move, stating that the tariff hikes go “against the whole world.” Beijing also introduced retaliatory tariffs, further intensifying the standoff. Meanwhile, Bloomberg reported that China’s top leadership convened on April 10, 2025, to discuss additional stimulus measures to support its struggling economy, already weakened before the trade war escalated.
Trump remains optimistic, predicting that trade deals will eventually be struck with all countries, including China. “A deal’s going to be made with China. A deal’s going to be made with every one of them,” he said at the White House, though he noted that China’s leaders “don’t quite know how to go about it.” Trump has accused China of overproduction and “dumping” cheap goods, a key driver of his aggressive trade policies aimed at reviving America’s manufacturing base.
Global Reactions and Future Negotiations
The tariff pause has prompted varied responses from other nations. Japan, previously hit with a 24 percent tariff, welcomed the reprieve but demanded further reconsideration of levies on its steel and auto exports. The Association of Southeast Asian Nations (ASEAN) expressed readiness for dialogue without imposing retaliatory measures, while Vietnam and the US agreed to begin negotiations on a reciprocal trade agreement. The European Union, however, launched countermeasures targeting over 20 billion euros’ worth of US products in response to the initial tariffs.
Trump claimed that world leaders are eager to negotiate “tailored” deals with the US, with delegations from Japan and South Korea already en route to Washington. Speaking at a Republican dinner on April 8, 2025, he boasted, “These countries are calling us up kissing my ass,” reflecting his confidence in the US’s negotiating position.
A Fragile Path Forward
As the 90-day pause unfolds, the global economy remains on edge. While markets have reacted positively to the temporary relief, the ongoing US-China trade duel threatens to derail progress. China’s call for cooperation and dialogue signals a potential opening, but with both sides entrenched in their positions, the path to resolution remains uncertain. For now, the world watches as the next 90 days could shape the future of international trade—and the global economy at large.
