Trump Imposes 125% Surcharge on Chinese Imports, Offers 90-day Tariff Pause to Allies
In an escalation of trade tensions, Donald Trump has announced a 125% surcharge on Chinese imports, citing Beijing’s disrespect for global markets. This decision, effective immediately, specifically targets the countermeasures taken by China in ongoing trade disputes. ‘China must understand that the days of plundering the United States and other nations are over,’ he emphasized in a post on Truth Social on April 9.
The former president makes no secret of his intention to punish countries that choose to retaliate against US tariff measures. Beijing is clearly identified as the main perpetrator, a view shared by Kenneth Bessent, a close economic advisor to Trump, who describes China as the ‘biggest source of US trade problems’.
Opening for Allies with a 90-day Pause
Conversely, Washington is offering a gesture of appeasement to those who choose not to respond. Trump has announced a ’90-day pause’ on reciprocal tariffs for over 75 countries, accompanied by a substantial reduction in the rate to 10%. This truce is aimed specifically at Canada and Mexico, which also benefit from this eased measure. The message is clear: those who cooperate will be rewarded.
A White House spokesperson confirmed that this decision was not driven by any stock market panic, but rather by Trump’s strategic desire to personally engage in the search for bilateral agreements. Bessent insists: ‘This is not a trade war. It is a clarification of the American position.’
Euphoria in the Markets Despite Tensions
Despite the bellicose tone of the speech, Wall Street reacted positively. The S&P 500 index jumped by nearly 7% and the Nasdaq rose by about 8% following the announcement. Bitcoin also benefited, surging 7% to surpass $81,500. These increases reflect market enthusiasm for the prospect of reduced tensions with most trading partners, as well as the possibility of a more transparent framework in the short term.
Howard Lutnick, CEO of Cantor Fitzgerald and Secretary of Commerce, believes that ‘the world is ready to work with Trump’, but notes that China seems to be ‘heading in the opposite direction’. The current dynamic reveals a growing geopolitical divide, with a clear rift between cooperative countries and those perceived as hostile to the American trade agenda.
An Assumed Pressure Strategy
This dual approach – maximum punishment for adversaries and rewards for allies – illustrates Trump’s transactional vision of international trade. By positioning the United States as an arbiter and central actor, he hopes to force his partners into quick concessions. The 90-day deadline serves as both a negotiation window and a countdown to another round of tensions if no agreement is reached.
The question now is whether China will buckle under pressure or respond with an even tougher counteroffensive?
