Trump's Tariff Pause Sharpens Trade War on China, Markets Bounce
President Trump paused most new tariffs for 90 days, prompting a strong market rebound while maintaining a heightened tariff on Chinese imports that sharpens the ongoing trade conflict.
Published on April 10, 2025
On April 10, 2025, President Donald Trump announced a 90-day pause on most of his newly imposed tariffs on dozens of countries. The move, which came on the heels of a severe market rout that wiped trillions from stock valuations and caused U.S. bond yields to surge, saw global markets rebound with the S&P 500 up 9.5% and strong gains in Asian markets. Despite the rollback on many tariffs, a 10% baseline duty remains in effect, and specific tariffs—including those on fentanyl from Canada and Mexico—were excluded from the pause.
In a strategic shift, the pause refocuses U.S. trade pressure squarely on China. Supplemental details indicate that while tariffs for many nations have been temporarily eased, the administration increased tariffs on Chinese imports, further intensifying the trade conflict. This decision has elicited mixed reactions among policymakers and industry analysts, with debates centered on both its economic impact and its implications for future negotiations with China and other trading partners.