While most other countries will now, at the time of writing, receive some sort of relief and breathing room from the global tariffs pause, China is currently facing, well, a dramatically steep 125% tariff rate in this trade war impact, which is actually up considerably from the previous 104% Trump tariffs that were just recently implemented. This major policy shift came just about 24 hours after implementing sweeping duties that had triggered, well, historic market volatility across the globe.
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Trump’s Global Tariff Pause and Its Impact on Trade War Dynamics
The 90-day global tariffs pause was announced on Wednesday after markets had experienced really intense volatility for several days. While most countries will now receive some relief, China currently faces a steep 125% tariff rate, which is up from the previous 104%.
Trump told reporters:
“I thought that people were jumping a little bit out of line, they were getting yippy.”
China Singled Out in Trade Battle
The global tariffs pause specifically excludes China, which actually accounts for about 14% of all U.S. imports right now. Beijing has already responded with their own 84% tariffs on American goods.
China’s foreign ministry spokesperson Mao Ning posted:
“We don’t back down.”
Trump claimed during his announcement:
“China wants to make a deal. They just don’t know how quite to go about it.”
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Economic Implications
A 10% blanket duty still remains in place on most imports despite the global tariffs pause announcement. The markets, however, responded rather positively, with the S&P 500 closing 9.5% higher yesterday.
Treasury Secretary Scott Bessent stated:
“This was his strategy all along. And you might even say that he goaded China into a bad position.”
Goldman Sachs has just revised their recession probability down to 45%, though they noted that existing tariffs would still increase the overall rate by approximately 15%.
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Daniel Russel, vice president at the Asia Society Policy Institute, said:
“China is unlikely to change its strategy: stand firm, absorb pressure, and let Trump overplay his hand. Beijing believes Trump sees concessions as a weakness.”
Spanish Prime Minister Pedro Sanchez made a recent statement and said:
“The measure announced by the U.S. administration seems to open the door to negotiation.”
This global tariffs pause currently signals, you know, a potentially significant shift in Trump’s approach to international trade and such, while also still maintaining a strong focus on China tariffs in the ongoing and, well, rather complicated trade war impact on the global economy right now, at least as things stand.
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