Trump Pauses Tariffs On Most Countries— Except China: Mission Accomplished Or More Chaos On The Horizon?
Markets soared as it now seems that only China and the U.S. are in a significant trade standoff.
Posted by Peter List, Editor | April 9, 2025
The U.S. stock market soared midday on Wednesday on news that President Donald Trump announced a 90-day pause on some reciprocal tariffs, while keeping the 10 percent tariffs on all imports, and actually raising the tariffs on China to 125 percent.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Trump stated on the Truth Social platform.
“Conversely,” Trump said, “and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.”
Despite Administration statements that dozens of countries had already reached out to the White House over the past week, which may have been a clue the reversal was coming, Trump’s announcement surprised some who were girding themselves for a global trade war.
Following Trump’s announcement, the White House and Republicans have hinted that the reversal was part of the strategy all along.
“Behold the ‘Art of the Deal’” House Speaker Mike Johnson posted on X.com (formerly Twitter).
“Today’s 90-day tariff pause, which slashed rates to 10% for most nations while bringing many others to the table, shows his unmatched ability to negotiate from strength,” Rep. Elise Stefanik posted to X. “It has driven American and global markets up while keeping pressure on Communist China.”
On the surface, it would appear that the U.S. and China are the only two countries in a serious tariff war. However, that may not really be the case.
“The 125 percent tariffs on China are now somewhat of a mirage,” notes Mike Shedlock. “Via Vietnam, Taiwan, and Mexico, China will re-route goods through those countries.”
While Trump’s announcement pausing the tariffs for most countries for 90 days may be temporary, it appears to have made investors happy—at least for now.