U.S. President Donald Trump has stated that no country will be exempt from tariffs, even as a 90-day pause on certain levies has been introduced. While some industries and Chinese-made electronics saw a brief reprieve, the broader strategy signals continued economic tension — especially between the U.S. and China.
Background: A Roller-Coaster Ride for Global Markets
Since President Trump’s April 2 announcement of new tariffs, global markets have experienced high volatility. Stocks dropped sharply, then partially recovered following last week’s announcement of a 90-day pause on the steepest tariffs.
However, Trump has clarified that the pause does not mean a softening of U.S. trade policy. Most countries are now facing a baseline 10% tariff, while China faces significantly higher rates — up to 145% on U.S. goods, with Beijing retaliating at 125%.
Trump’s Firm Stand on Trade
President Trump reiterated his longstanding stance that unfair trade practices have resulted in massive U.S. trade deficits.
“Nobody is getting ‘off the hook’ for the unfair Trade Balances, and Non-Monetary Tariff Barriers, especially not China,” Trump declared on Truth Social.
Despite issuing limited exemptions for Chinese semiconductors and electronics — to shield American consumers from high prices on phones and laptops — Trump insisted these products still fall under a different 20% tariff category.
China Responds
China’s Commerce Ministry downplayed the exemptions, calling them a “small step” and urging the U.S. to fully scrap its tariff policy. China is also actively courting Southeast Asian nations, presenting itself as a stable alternative to the U.S. amid growing global uncertainty.
President Xi Jinping begins a Southeast Asia tour this week, visiting Vietnam, Malaysia, and Cambodia, with trade likely topping the agenda.
What’s Next: More Tariffs on the Way?
Trump’s Commerce Secretary, Howard Lutnick, indicated that semiconductor tariffs may fully roll out within the next two months. Pharmaceutical products, however, may remain exempt as part of a national strategy.
Further, sector-specific tariffs are likely to be introduced soon, targeting goods tied to U.S. national defense and technology networks.
No Immediate Talks withl China
Despite global calls for de-escalation, Trump’s trade envoy Jamieson Greer confirmed there are no current plans for direct talks between Trump and Chinese President Xi Jinping. According to Greer, Washington is expecting Beijing to take the first step.
Investor Concerns and Market Fallout
The ongoing tariff uncertainty has sent ripples through the economy:
- Consumer confidence is down
- The dollar has weakened
- Bond markets have seen significant sell-offs
Even some of Trump’s billionaire allies on Wall Street are now publicly criticizing the tariff strategy as “harmful and confusing.”
Final Word: 90-Day Countdown
Despite the criticism, the White House insists its “America First” trade approach is working. U.S. officials claim dozens of countries have initiated trade negotiations in hopes of avoiding tougher penalties after the 90-day window closes.
As Trump put it:
“We’re working day and night. Sharing offers. Receiving feedback. The goal is simple — fair trade or no trade.”
