Donald Trump has announced that he will immediately suspend the highest tariffs for 90 days for dozens of countries. It is not yet clear which nations will benefit from this tariff truce, nor under what criteria it will be applied. What has been confirmed is that, even in those cases, the base rate of 10% that came into effect last Saturday will remain in force.
Partial relief after the suspension. The 90-day pause in some reciprocal tariffs introduces a brief respite in a context of maximum tension. This window could allow the United States and the countries affected by the measure to make progress on possible agreements that would slow down the application of the harshest taxes. However, the threat to global economic stability remains latent: the trade conflict has not been defused and is set to enter uncharted territory.
The president also said he “will review” tariff exemptions for some US companies. “Some companies, through no fault of their own, are in a harder hit sector. We have to be flexible, and I can do that,” the president said.
New tariffs for Canada and Mexico? As reported by CBC, Trump appears to have introduced a new 10% tariff for his two main trading partners. Until now, both countries had been left out of this round of reciprocal measures, although they were already dealing with a 25% tax last month. It is not clear whether this new 10% would be in addition to the previous one or whether it would replace it, if applied.
The turn of events in Washington comes at a key moment. Dozens of countries were already preparing their response to the reciprocal tariffs that came into force just a few hours ago. Among them, the member states of the European Union, which on Wednesday approved a package of trade reprisals against the United States. The measures are scheduled to be applied on April 15, although in this new scenario it remains to be seen whether that timetable will be maintained.
The trade war between the United States and China is not over. The two largest economic powers on the planet are engaged in a tariff escalation that shows no sign of slowing down. We are facing a scenario that could have significant effects on the global economy, especially due to its direct impact on interconnected supply chains and the stability of financial markets.
In less than 24 hours, Donald Trump’s administration decided to raise tariffs on Chinese imports from 54% to 104%, in response to Beijing’s refusal to withdraw its 34% tariff. The reaction was swift: China announced that it would raise its tariff on US products to 84%. And when it seemed difficult to go any further, Washington upped the ante again: the US tariff now rises to 125%.
A blow to China for its refusal to negotiate. “Based on the lack of respect that China has shown towards world markets, I hereby increase the tariff charged to China by the United States of America to 125%, with immediate effect,” Trump said in a publication. The announcement reinforces the political and commercial pressure on Beijing at a time of maximum tension. Now, all eyes are on the possible response of the Chinese government.
Both powers are immersed in a power struggle in which, for now, nobody seems willing to take a step back. The 125% tariff represents a serious obstacle for many US companies that, for years, have relied on China as a key partner for assembling their products thanks to its affordable labor and quick access to the global supply chain.
Companies exposed. Among the most exposed companies is Apple, which yesterday was one of the big losers after the announcement of the now outdated tariffs of 104%. The Cupertino-based company assembles a large part of its iPhones in China, taking advantage of highly competitive production costs. Replicating this operation on US soil, as the Donald Trump administration intends, represents a major challenge that goes far beyond a simple rise in costs: it involves rethinking a large part of its industrial chain.
