WASHINGTON – In a significant shift in U.S. trade policy, President Donald Trump declared a 90-day suspension of the recently imposed “reciprocal” tariffs on multiple countries, aiming to foster negotiations for new trade agreements. This suspension does not extend to China, whose tariffs have been escalated to 125%.

Details of the Tariff Suspension

The reciprocal tariffs, which took effect just after midnight on April 8, ranged between 20% and 32% for countries including the European Union, Taiwan, Japan, and Vietnam. Additionally, a new 10% base tariff now applies universally, encompassing Mexico and Canada, who were previously exempt. The 90-day pause is intended to provide a window for these nations to engage in negotiations for customized trade agreements with the United States.

China’s Exclusion and Increased Tariffs

China remains excluded from this suspension, with tariffs on its goods increased to 125%. This decision follows China’s announcement of additional tariffs ranging from 10% to 15% on U.S. imports, including agricultural products such as chicken, wheat, corn, and cotton. Furthermore, China has placed 25 American firms under restrictions, intensifying the trade conflict between the two nations.

Market Reactions

U.S. stock markets responded positively to the tariff suspension. The S&P 500 rose by 1.04%, the Dow Jones Industrial Average climbed 0.77%, and the Nasdaq Composite increased by 1.50%. Investors appeared relieved by the temporary easing of trade tensions, leading to a surge in market confidence.

Global Responses

The European Union, which had approved its first set of retaliatory tariffs on U.S. imports on April 9, expressed cautious optimism. EU officials indicated a willingness to engage in negotiations during the suspension period.

Conversely, China criticized the U.S. decision to exclude it from the tariff suspension and vowed to implement its retaliatory measures as planned. Chinese officials emphasized their commitment to protecting national economic interests amid escalating tensions.

Democratic Party’s Perspective

Democratic leaders in the U.S. have expressed skepticism regarding the effectiveness of the tariff suspension. They argue that the administration’s inconsistent trade policies may undermine the credibility of the United States in future negotiations and have called for a more strategic and consistent approach to international trade relations.

Outlook

The 90-day suspension offers a critical opportunity for the U.S. and its trading partners to renegotiate terms and potentially avert a full-scale trade war. However, the exclusion of China and the escalation of tariffs on its goods suggest that tensions between the world’s two largest economies are set to persist. The coming months will be pivotal in determining the trajectory of global trade relations and economic stability. (zai)