Trump Pauses Global Tariffs, But Escalates Trade War with China

Trump Pauses Global Tariffs, But Escalates Trade War with China

President Trump announced a 90-day pause on most global tariffs, offering temporary relief to investors after significant market turmoil caused by his previous tariff announcements.

This pause, however, excludes China, where Trump dramatically increased tariffs on Chinese goods to 125 percent in response to China's retaliatory tariffs, escalating the trade war between the two nations.

The decision followed a sell-off in US government debt and rising borrowing costs, with critics suggesting Trump's initial hardline stance softened due to market pressure, although he maintained that the situation was part of a larger negotiation strategy.

While the temporary tariff reduction benefits many countries, including the EU, India, and Vietnam, the UK remains unaffected as it was already subject to a 10 percent baseline tariff.

The ongoing trade dispute continues to pose significant risks to global financial stability, with concerns raised about the potential impact on various sectors, including pharmaceuticals and steel, and the UK government actively working to mitigate the negative consequences for British businesses and jobs.