Trump backtracks on China tariff after 'huge blow' to the trading relationship

Description of Trump Backtracking on China Tariff After 'Huge Blow' (2025):

In May 2025, President Donald Trump partially reversed his hardline stance on tariffs, announcing a 90-day global tariff pause after facing backlash from business leaders and market instability. This shift came after a “huge blow” to the U.S.–China trading relationship, triggered by Trump raising tariffs on Chinese imports to 125%.

The sudden escalation had severely impacted sectors like retail and shipping, causing disruptions for major companies such as Amazon and ZIM Shipping. The tariff hike worsened economic tensions, and fears of a potential recession began to surface.

In response, the temporary pause was introduced to ease pressure on global markets while maintaining a tough stance on China. However, analysts warned that the increased tariffs could further strain U.S.-China relations, adding uncertainty to the international trade environment.

This move highlights the fragile balance Trump is attempting to strike between economic nationalism and global economic stability.