The US President has announced a 90-day suspension of reciprocal tariffs for countries willing to negotiate, while maintaining a base tariff of 10%.
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China, on the other hand, is excluded from the truce and is facing duties of up to 125%, after announcing 84% tariffs on American products. Trump's decision has unleashed a wave of euphoria on Wall Street, with the New York Stock Exchange soaring after a period of strong volatility.
The White House expects the European Union to follow suit, postponing its own tariffs for 90 days, Commerce Secretary Howard Lutnick said. However, sectoral tariffs on steel, aluminum and automobiles will remain in place.
China in the crosshairs
Tensions with Beijing remain high, with Trump saying the deal to sell TikTok has stalled because of China's response to the tariffs. The White House also said Mexico and Canada will not benefit from the 90-day pause.
“No retaliation, you will be rewarded”: the American administration has sent a clear message to countries that intend to avoid retaliation, promising rewards for those who refrain from responding to the duties.
The pressures and the change of direction
Trump's decision appears to be the result of mounting pressure from Wall Street and Silicon Valley CEOs, his financiers, and many Republicans, as well as the collapse of financial markets. The president, however, has said he is ready to reach "fair deals with all countries," including the EU, and has expressed his belief that China also wants a deal.
Trump’s strong words: Just a few days earlier, Trump had used strong and offensive tones, stating that “at least 70 countries are calling me to kiss my ass” and that they were willing to do anything to reach an agreement. The president had also defended his trade war, declaring that he collects “2 billion dollars a day” from the tariffs.
Trump's move has sparked mixed reactions internationally. Many foreign governments that had expressed interest in a dialogue are still waiting for a response. The EU voted on its countermeasures against Trump's trade war, while Spanish Prime Minister Pedro Sánchez flew to Beijing.
The uncertain future: The 90-day truce will allow negotiations to begin, but the clash between the world's two largest economies, the United States and China, remains a threat to the stability of global markets.
Article published on 10 April 2025 - 06:39
The president's announcement seems to me to be a strategic move to calm the markets, but I am not sure if it will work with China that is always ready to respond. The situation seems complicated and difficult to manage.