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| US President Donald Trump File Photo |
Washington, D.C., April 10, 2025 — The Biden administration urged restraint Wednesday after President Donald Trump dramatically escalated trade tensions with China by imposing 125% tariffs on all Chinese exports to the United States, while simultaneously announcing a 90-day suspension of newly imposed duties on most other trading partners.
"Do not retaliate, and you will be rewarded," a senior White House official warned in what appeared to be a message directed at America's trading partners, as global markets continue to reel from the most severe volatility since the early COVID-19 pandemic.
The unprecedented tariff rate targeting Beijing has already triggered swift retaliation, with China implementing 84% duties on U.S. imports effective Thursday afternoon local time.
Speaking outside the White House, President Trump acknowledged that recent market turmoil influenced his decision to offer temporary relief to most nations while doubling down on China.
"I thought that people were jumping a little bit out of line, they were getting yippy, you know," Trump said. "You have to be flexible."
Despite the pause for most countries, a baseline 10% tariff on nearly all U.S. imports remains in place. Canada and Mexico continue facing 25% tariffs related to fentanyl provisions unless they fully comply with USMCA trade rules. Duties on key industries including automobiles, steel, and aluminum also remain untouched by the freeze.
China's Commerce Ministry condemned the measures through state media as "a serious infringement of the legitimate interests of all countries," while maintaining that "there is no winner in a trade war, and China does not want one." However, officials made clear Beijing "will by no means sit by when the legitimate rights and interests of its people are being hurt."
The administration's sudden reversal comes just days after dismissing reports of a potential tariff pause as "fake news." Treasury Secretary Scott Bessent insisted the maneuver was strategically planned to "bring countries to the table," though Trump's own comments suggested market reactions played a significant role.
"China wants to make a deal," Trump claimed Wednesday. "They just don't know quite how to go about it."
Daniel Russel, vice president at the Asia Society Policy Institute, expressed skepticism about the approach: "Other countries will welcome the 90-day stay of execution — if it lasts — but the whiplash from constant zigzags creates more of the uncertainty that businesses and governments hate."
As global markets, businesses and governments anxiously monitor developments, the next steps in this high-stakes economic standoff remain uncertain.
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