Thu Apr 10 12:15:00 UTC 2025: ## Trump Halts Some Tariffs, Escalates Trade War with China
**Global markets surged after President Trump announced a 90-day suspension of increased tariffs on several countries, including the European Union (EU), while simultaneously raising tariffs on Chinese goods to 125 percent.** The move, described by Trump as a strategic pause for renegotiation, leaves China as the primary target of his trade war.
The EU, which had planned retaliatory tariffs on $20 billion worth of US goods in response to earlier steel and aluminum tariffs, welcomed the suspension and mirrored the gesture by pausing its own tariffs for 90 days. EU President Ursula von der Leyen emphasized that this was a temporary measure, with countermeasures ready to be reinstated if negotiations prove unsatisfactory.
Other countries also signaled their intention to engage in trade talks with the US following Trump’s announcement. Canada, Vietnam, and Pakistan are among those planning negotiations with the US administration.
However, the reprieve did not extend to China. The increased US tariffs on Chinese goods, which took effect alongside Beijing’s 84 percent retaliatory levies, represent a significant escalation of tensions. China retaliated further by reducing the number of imported US films. While both sides claim a willingness to continue dialogue, neither has yet agreed to roll back existing tariffs.
The dramatic shift in tariff policy sent shockwaves through global markets. Following a significant rally on Wall Street Wednesday, Asian and European markets experienced substantial gains Thursday. Despite the market enthusiasm, some analysts expressed concerns about the volatility and uncertainty surrounding Trump’s trade strategy. Trump himself defended his actions, portraying the pause as a calculated move to secure better trade deals. His administration is optimistic about the prospect of negotiating new agreements within the 90-day period.
First Piper 