In a move that stunned international observers, President Donald Trump announced a selective pause on planned tariff hikes—granting relief to most US trading partners while significantly increasing pressure on China. The strategy has opened up questions not only about America’s trade goals, but about the future of global economic cooperation.
The 90-day tariff suspension applies only to countries that chose not to retaliate after last week’s sweeping US tariff announcement. For them, a 10% “reciprocal tariff” cap was introduced. But China, having responded with a retaliatory 84% tariff on American goods, now faces a harsh 125% US import tax—effective immediately.
World markets responded with relief and caution. US indexes soared following the policy shift, but analysts warned the volatility reflects deeper uncertainty. “Markets like clarity,” said one Wall Street strategist. “And what they’re getting is unpredictability dressed up as negotiation.”
More concerning for some are the structural implications. Dr. Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO), warned that the US-China trade standoff could reduce bilateral trade by as much as $466 billion. She called for “measured engagement, not unilateral escalation,” noting that global supply chains are already under pressure.
China’s foreign ministry echoed that sentiment, accusing the US of weaponizing tariffs and calling for negotiations built on mutual respect. “Bullying practices have no place in 21st-century diplomacy,” said a spokesperson. Meanwhile, Beijing has made it clear: it will not yield to pressure without equal footing.
While Trump expressed confidence that “everything will work out,” critics argue that his approach lacks a cohesive long-term plan. Allies may have avoided the worst this time, but the precedent of selective economic punishment has left a mark. With trust in global systems already fragile, the question remains: has Washington just bought time—or triggered something far larger?
