The growing trade tensions ease on Wednesday as President Donald Trump announced a 90-day suspension of new global tariffs for most countries—including Nigeria—while dramatically increasing tariffs on Chinese imports to an unprecedented 125%.
The administration has lowered the general global tariffs rate to 10%, down from previous highs of up to 25%. The pause, according to White House officials, is designed to allow room for trade negotiations with over 75 countries that have reportedly expressed interest in reaching new trade agreements with the United States.
Key Global Tariff Changes:
- China: Raised from 25% to 125% on a broad range of imports including electronics, steel, and textiles.
- European Union: Suspended increase; tariff held at 10%.
- Canada & Mexico (USMCA Partners): Remain at 10%, pending further negotiation.
- Nigeria and other African trade partners: Tariffs dropped to 10%, with a temporary freeze on any new levies.
- India and Southeast Asia: Mixed tariffs remain under review, with electronics and pharmaceuticals under potential scrutiny.
- Pharmaceutical Imports (Global): Still under consideration for new tariffs, with a final decision expected before the end of the 90-day suspension.
Market Response
The stock market surged in response to the announcement. The S&P 500 jumped by 7%, reflecting investor optimism over the temporary de-escalation in trade tensions. Bond markets, however, remain volatile amid lingering recession concerns and declining long-term yield rates.
Analysts suggest the move is less about strategic timing and more a reaction to economic pressures. The bond market’s recent slide, coupled with softening consumer confidence and mounting concerns from industry leaders, likely contributed to the administration’s shift.
Pushback from Business and Political Circles
Leading economists and business coalitions have long warned that Trump’s aggressive tariff policies could undermine global supply chains and trigger a recession. They argue that sudden tariff hikes erode business certainty and distort investment planning.
“There’s a growing concern that the administration is negotiating by disruption,” said Danielle Rousso, Chief Global Economist at MarketLine Analytics. “Pausing some tariffs may provide temporary relief, but the massive hike on China could provoke serious retaliation.”
Republican Lawmakers Grow Restless
On Capitol Hill, Republican lawmakers are increasingly uneasy about the broad scope and unpredictability of Trump’s trade strategy. During a tense Senate Finance Committee hearing, U.S. Trade Representative Jamieson Greer defended the administration’s approach as necessary leverage—but lawmakers remained skeptical.
Senator Thom Tillis (R-NC) voiced a common concern: “We need to understand the endgame here and ensure that our actions do not inadvertently harm the very industries we aim to protect.”
Many fear the sharp escalation against China could lead to retaliatory tariffs on key U.S. exports such as soybeans, machinery, and agricultural equipment—posing a threat to American farmers and manufacturers.
What Comes Next?
As the 90-day suspension unfolds, all eyes will be on whether the administration can convert the pause into productive trade agreements. The stark contrast between the general reduction for most countries and the punitive spike against China underscores Trump’s intent to single out Beijing over longstanding trade grievances.
International trade observers remain cautious. “This could go either way,” said Maria Chen, Director of Global Trade Policy at the World Trade Council. “Either this becomes a window for compromise, or it turns into another chapter in the global tariff war.”
With the global economy already grappling with inflationary pressures and geopolitical instability, the outcome of U.S. trade policy over the next three months may prove pivotal for world markets.
