Excluding China… Trump suspend tariffs on allies for 90 days

US President Donald Trump announced on Wednesday a 90-day suspension of tariffs recently imposed on several US-friendly countries, including countries in Europe and Asia.

The decision comes at a sensitive time, with global markets experiencing volatility and instability, amid growing fears that the US economy is entering a recession, and growing international criticism of Washington’s protectionist policies.

Although this freeze was met with relative relief by markets and some Western capitals, China remained exempt from the decision.

In fact, tariffs on its imports were raised to 125%, raising questions about the US administration’s motives and true objectives behind this shift in trade policy.

According to observers, this move isn’t only related to economic considerations, but rather reflects a delicate balance between mounting domestic pressure, international reactions, and the negotiating tactics Washington employs with its adversaries, especially Beijing.

The imposition of previous tariffs led to violent tremors in US stock markets, with the Dow Jones index recording a sharp decline, while a state of panic prevailed in the markets, described by Reuters as a “sell-off of everything American,” in a scene reminiscent of previous financial crises.

The temporary suspension of tariffs also came after consultations among G7 finance ministers, excluding the United States, who discussed the possibility of adopting a unified position in response to US trade policies.

Italian Economy Minister Giancarlo Giorgetti stated that this step could open the door to a new dialogue with Washington.

While tensions with its allies have eased, the United States has escalated its actions against China, raising tariffs on its goods to an unprecedented level.

According to the Wall Street Journal, the US administration seeks through this move to correct its chronic trade deficit and confront what it describes as Chinese violations of intellectual property rights.
Market reactions: Cautious relief

These developments led to a sudden jump in US stock indices, with the Standard & Poor’s 500 index rising 9.5% and the Nasdaq index jumping 12.2%, the largest increase recorded by both indices since World War II.

However, this recovery coincided with a strong Chinese response, as Beijing imposed new 84% tariffs on a number of US goods and blacklisted US companies.

In Europe, incoming German Chancellor Friedrich Merz expressed support for a unified European response, calling for a tariff-free trade agreement with the United States.

In Asia, Japanese and South Korean markets responded positively, with analysts viewing the US suspension as a tactical move aimed at buying time rather than a strategic shift.

Despite initial optimism, the picture remains unclear, as the decision is expected to have numerous economic and geopolitical repercussions, including:

Economic uncertainty: Continued escalation with China could lead to higher prices in the US and slow growth.

Supply chain disruption: American companies will be forced to restructure their supply networks away from China, which will take significant time and effort.

Growing diplomatic tension: China’s exemptions from the freeze could complicate any future negotiations, especially in areas such as technology and energy.

In light of these developments, many view Trump’s 90-day suspension of tariffs as merely a temporary truce in a protracted trade war.

While the decision opens the way for renewed negotiations with allies, escalation with China remains a key element in an ever-more tense global economic landscape.