China called on the United States to meet “halfway” in trade negotiations following President Donald Trump’s dual announcement of a 90-day pause on tariff increases for most trading partners alongside a sharp escalation targeting Chinese goods. The mixed policy signals sent global markets soaring while further inflaming tensions between the world’s two largest economies.
Trump’s decision to maintain new 10% baseline tariffs while suspending higher rates for 90 days triggered immediate market euphoria, with the S&P 500 surging 9.5% and Asian markets posting record gains – Taipei jumped 9.3% while Shanghai rose despite the China-specific measures. European indices similarly rebounded on the news, which EU Commission President Ursula von der Leyen called “an important step towards stabilizing the global economy.”
However, the relief for most nations contrasted with heightened U.S.-China tensions as Trump raised tariffs on Chinese imports to 125%, prompting Beijing to implement retaliatory 84% levies on American goods. Chinese Commerce Ministry spokeswoman He Yongqian warned the measures “severely impact” the global economy while keeping the “door to dialogue open,” urging mutual respect and win-win solutions. The foreign ministry went further, accusing the U.S. of acting “against the whole world.”
The developments unfolded as China’s leadership convened emergency meetings to address economic headwinds exacerbated by the trade war. Meanwhile, Trump framed the 90-day pause as strategic leverage, boasting that over 75 nations had sought negotiations and world leaders were “calling us up kissing my ass.” While Japan and ASEAN nations welcomed the temporary reprieve, the EU moved forward with counter-tariffs targeting €20 billion in U.S. products, underscoring the fragile state of global trade relations.
Market analysts noted the breathing room could facilitate crucial diplomacy, though the intensified U.S.-China standoff continues threatening global supply chains and economic stability. With Beijing urging compromise and Washington maintaining aggressive posturing, the next three months may prove decisive for the trajectory of international commerce.
