U.S. Pauses Higher Tariffs for Most Countries, but Increases Pressure on China

Global financial markets rallied Thursday after President Donald Trump unexpectedly announced a 90-day pause on newly imposed tariffs for most countries offering temporary relief to international trade partners and investors alike. However, the U.S. took a tougher stance on China, intensifying economic pressure in the ongoing trade dispute between the world’s two largest economies.

The decision brought immediate relief to battered global stock markets, which had been reeling from the uncertainty caused by escalating tariff tensions. Asian markets responded swiftly, with major indices posting strong gains. In Europe, which had already closed when Trump made the announcement on Wednesday, markets surged at the opening of Thursday’s session.

The FTSE 100 jumped by 6.2%, gaining 485 points to reach 8166, while Germany’s DAX climbed 7.8%, France’s CAC 40 rose 6.4%, and Spain’s IBEX 35 increased 7.2%, continuing what analysts are calling a “relief rally.”

While the temporary tariff suspension is viewed as a diplomatic gesture to ease economic tensions with key allies and trade partners, the White House made it clear that China will not benefit from the pause. Instead, additional levies on Chinese goods are expected to remain and could be increased further as the U.S. seeks to address long-standing concerns over intellectual property theft, unfair trade practices, and market imbalances.

The differentiated approach signals Washington’s intent to isolate Beijing on trade while attempting to rebuild or stabilize relationships with other global economic players. The move is also seen as an attempt to control the economic fallout at home, especially with U.S. businesses expressing concerns over rising costs and supply chain disruptions linked to the tariffs.

As the 90-day pause takes effect, attention now turns to upcoming negotiations and whether the U.S. and its trade partners including China can reach more sustainable agreements. Investors and global leaders alike are watching closely, with hopes that this brief reprieve could lead to longer-term stability in the global economy.