"Understanding the Implications of the 90-Day Pause for China's Trade and Relations."
The 90-Day Tariff Pause: Does It Apply to China?
On April 9, 2025, US President Donald Trump announced a 90-day pause on tariffs for 75 countries, sparking widespread discussions about its implications for global trade. However, one critical question has emerged: Does this tariff pause apply to China? The short answer is no. China is explicitly excluded from this temporary relief, marking a sharp contrast in the US trade policy approach toward Beijing.
**Background of the Announcement**
President Trump’s decision to pause tariffs for 75 countries was framed as a move to encourage negotiations and reduce trade barriers. The countries benefiting from this pause were selected because they had not retaliated against US tariffs and were actively engaged in discussions with key US government agencies. The announcement, made via Truth Social, emphasized the administration’s focus on addressing trade imbalances, currency manipulation, and non-monetary tariffs.
However, the same announcement also revealed an immediate escalation in tariffs on Chinese goods, raising the rate to 125%. This move was a direct response to China’s earlier decision to impose an 84% tariff on US goods, effective April 10, 2025. The exclusion of China from the tariff pause underscores the ongoing tensions between the two economic superpowers.
**Why China Was Excluded**
The exclusion of China from the 90-day tariff pause reflects the deepening trade conflict between the US and China. Unlike the 75 countries granted relief, China has been a primary target of US trade measures due to longstanding disputes over unfair trade practices, intellectual property theft, and market access restrictions. The Trump administration’s decision to raise tariffs on China to 125% signals a hardline stance, suggesting that negotiations with Beijing are either stalled or deemed insufficiently productive.
**Market Reactions and Implications**
The announcement had immediate and dramatic effects on global markets. Stock markets surged, with major tech companies like NVIDIA, Tesla, and Apple seeing gains exceeding 12%. The Nasdaq-100 recorded one of its best trading days since 2008, while the S&P 500 rose by over 8%. Cryptocurrencies also experienced a rally, with Bitcoin surpassing $80,000 and other digital assets like Ethereum and Solana posting significant gains.
However, the exclusion of China introduces risks. The heightened tariffs could provoke further retaliatory measures from Beijing, potentially escalating the trade war and disrupting global supply chains. While the 90-day pause offers temporary stability for other trading partners, the situation with China remains volatile. Investors and analysts are closely watching for signs of how China will respond and whether the US will adjust its strategy in the coming months.
**Conclusion**
The 90-day tariff pause does not apply to China, highlighting the strained trade relations between the two nations. While the pause provides breathing room for other countries, the increased tariffs on China could lead to further economic friction. The markets have reacted positively to the broader tariff relief, but the exclusion of China introduces uncertainty. As the 90-day period progresses, the focus will remain on whether negotiations with China can resume or if the trade war will intensify.
For now, the message is clear: the US is offering a temporary reprieve to some trading partners while maintaining a firm stance against China. The long-term consequences of this approach remain to be seen.
On April 9, 2025, US President Donald Trump announced a 90-day pause on tariffs for 75 countries, sparking widespread discussions about its implications for global trade. However, one critical question has emerged: Does this tariff pause apply to China? The short answer is no. China is explicitly excluded from this temporary relief, marking a sharp contrast in the US trade policy approach toward Beijing.
**Background of the Announcement**
President Trump’s decision to pause tariffs for 75 countries was framed as a move to encourage negotiations and reduce trade barriers. The countries benefiting from this pause were selected because they had not retaliated against US tariffs and were actively engaged in discussions with key US government agencies. The announcement, made via Truth Social, emphasized the administration’s focus on addressing trade imbalances, currency manipulation, and non-monetary tariffs.
However, the same announcement also revealed an immediate escalation in tariffs on Chinese goods, raising the rate to 125%. This move was a direct response to China’s earlier decision to impose an 84% tariff on US goods, effective April 10, 2025. The exclusion of China from the tariff pause underscores the ongoing tensions between the two economic superpowers.
**Why China Was Excluded**
The exclusion of China from the 90-day tariff pause reflects the deepening trade conflict between the US and China. Unlike the 75 countries granted relief, China has been a primary target of US trade measures due to longstanding disputes over unfair trade practices, intellectual property theft, and market access restrictions. The Trump administration’s decision to raise tariffs on China to 125% signals a hardline stance, suggesting that negotiations with Beijing are either stalled or deemed insufficiently productive.
**Market Reactions and Implications**
The announcement had immediate and dramatic effects on global markets. Stock markets surged, with major tech companies like NVIDIA, Tesla, and Apple seeing gains exceeding 12%. The Nasdaq-100 recorded one of its best trading days since 2008, while the S&P 500 rose by over 8%. Cryptocurrencies also experienced a rally, with Bitcoin surpassing $80,000 and other digital assets like Ethereum and Solana posting significant gains.
However, the exclusion of China introduces risks. The heightened tariffs could provoke further retaliatory measures from Beijing, potentially escalating the trade war and disrupting global supply chains. While the 90-day pause offers temporary stability for other trading partners, the situation with China remains volatile. Investors and analysts are closely watching for signs of how China will respond and whether the US will adjust its strategy in the coming months.
**Conclusion**
The 90-day tariff pause does not apply to China, highlighting the strained trade relations between the two nations. While the pause provides breathing room for other countries, the increased tariffs on China could lead to further economic friction. The markets have reacted positively to the broader tariff relief, but the exclusion of China introduces uncertainty. As the 90-day period progresses, the focus will remain on whether negotiations with China can resume or if the trade war will intensify.
For now, the message is clear: the US is offering a temporary reprieve to some trading partners while maintaining a firm stance against China. The long-term consequences of this approach remain to be seen.