In a dramatic turn of events amid global criticism, U.S. President Donald Trump announced a 90-day pause on tariffs—but with one major exception: China. While the pause was a welcome relief to many nations, Chinese goods will now face an even steeper tariff rate of 125%. This move has reignited trade tensions between the two economic superpowers.
The impact was immediately felt across global markets. Asian indices surged on Thursday morning, with Japan’s Nikkei 225 jumping 8%, South Korea’s Kospi rising over 5%, and Australia’s ASX 200 gaining a similar 5%. The U.S. markets also roared back on Wednesday, with the Dow Jones up nearly 3,000 points, the Nasdaq surging over 12%, and the S&P 500 climbing more than 9%.
China, however, isn’t backing down. In response to the U.S. move, Beijing announced “countermeasures,” including an 84% tariff on American goods. Chinese officials labeled Trump’s tariffs as “tax blackmail” and made it clear they would not yield under pressure.
As uncertainty continues, markets are swinging wildly, reflecting investor unease over how this escalating trade standoff could reshape the global economic landscape in the coming weeks.
